BELARUS NEWS AND ANALYSIS

DATE:

02/08/2007

EC gas panel to eye Russia-Belarus spat

BRUSSELS, Aug. 2 The European Commission Thursday said it would call a meeting of its gas coordination group to study the gas-supply spat between Belarus and Russia.

"The Commission believes that a safe and undisturbed supply of energy is of key importance for Europe's economy," the EC said in a statement on its Web site. "Energy supply disputes in the EU's direct neighborhood are therefore of serious concern to the European Commission."

On Wednesday the European Union's executive arm called on its Network of Energy Security Correspondents to monitor the dispute after Russian gas monopoly Gazprom said it will cut the amount of gas sold to and transiting through Belarus because of a contract dispute.

Daily gas supply volume to Belarus will be reduced by 45 percent starting at 10 a.m. Friday, the company said. Belarus missed a July 23 deadline to pay the Russian company $456.16 million for supplies.

The failure to pay the sum is likely to prove expensive. Russia had hiked the price of its gas to former Soviet states to near market rates, and under a deal it was agreed that Minsk would pay $55 per 1,000 cu m in the first half of the year with the difference of $500 million to be paid by July 23. Belarus must now pay $100 for 1,000 cu m of Russian gas; it previously paid $47.

Russia said it would work to ensure that gas flow to the rest of Europe would remain unaffected.

"I think that the current system of notification and coordination of efforts is operating smoothly enough to avoid causing any real problems to the European consumers of Russian gas," Vladimir Chizhov, head of Russia's permanent mission at the EU, told the Interfax news agency Thursday.

He acknowledged, however, the dispute with Belarus "may provoke some nervousness in the EU countries."

According to Russian figures, 20 percent of Russian gas is transported to Europe via Belarus.

Source:

http://www.earthtimes.org/articles/show/89610.html