BELARUS NEWS AND ANALYSIS

DATE:

28/12/2006

EU calls for end to Russia, Belarus gas pricing row

BRUSSELS, Dec 28 (Reuters) - The European Union's energy chief, fearing a disruption of gas supplies to EU countries, urged Russia and Belarus on Thursday to resolve their bitter pricing row to avoid any problems in early 2007.

"The (European) Commission is following the situation very closely since it may affect gas supplies to the European Union," EU Energy Commissioner Andris Piebalgs said in a statement.

"I call the two parts to reach as soon as possible a satisfactory agreement that do not put in question gas transits to the EU," he said.

National experts from the bloc's 25 member governments would meet industry and consumer bodies, as well as Commission representatives, in Brussels on Jan. 4 as the EU's Gas Coordination Group (GCG) to evaluate the situation , he said.

The GCG, which deals with measures to safeguard the security of the EU's natural gas supply, last met in early October to ensure that the EU could meet the demand for gas this winter, particularly in view of a similar situation one year ago.

Belarus has threatened to disrupt the transiting supplies, reviving memories of gas cuts to Europe last year in a row with Ukraine, although Russia's state gas monopoly Gazprom (GAZP.MM: Quote, Profile , Research) sends much smaller volumes of gas to the West via Belarus.

About 80 percent of Russian exports to Europe are pumped via Ukraine, with the rest going through Belarus. Russia supplies a quarter of Europe's gas, to more than 20 countries.

Belarus's contract expires on Dec. 31.

Gazprom says it has offered big price concessions to Belarus and can offer no more. While the monopoly says Europe is safe as extra gas is stockpiled Germany, the firm's head Alexei Miller said this week he had warned Germany, Poland and Lithuania about Belarus' "destructive position" in talks with Moscow.

At its October meeting, for the first time, the GCG was joined by representatives of Ukraine and Russia.

"In that occasion, Gazprom representative assured that no problem of gas supply was expected for this winter," the Commission statement said.

Source:

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-12-28T122105Z_01_L28324502_RTRIDST_0_ENERGY-EU-BELARUS.XML&rpc=66&type=qcna

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