BELARUS NEWS AND ANALYSIS

DATE:

02/08/2007

EU calls for gas group meeting over Russo-Belarus gas supply dispute

BRUSSELS (Thomson Financial) - The European Commission said it intends to call for a meeting next week of the gas coordination group to review the gas supply situation between Russia and Belarus.

'The Commission believes that a safe and undisturbed supply of energy is of key importance for Europe's economy,' it said in a statement.

'The Commission calls on both sides of the dispute to find swiftly an amicable settlement, to respect contractual obligations, to react in proportionate manner to disagreements and in any event not to disturb, neither directly nor indirectly, the gas supply to EU member states,' it added.

Yesterday evening the EU executive activated the EU's Network of Energy Security Correspondents (NESCO) to monitor the gas dispute between Russia and Belarus.

The commission said yesterday that it is 'monitoring' the situation in which Gazprom has threatened to cut gas supplies to Belarus by 45 pct by Aug 3 due to unpaid bills.

Gazprom said it would cut supplies unless the former Soviet republic pays its roughly 500 mln usd bill for the gas it has received so far this year.

Source:

http://www.forbes.com/markets/feeds/afx/2007/08/02/afx3981195.html