BELARUS NEWS AND ANALYSIS

DATE:

30/12/2006

Belarus Accuses Gazprom of Blackmail in Gas Row

By VOA News

Belarusian President Alexander Lukashenko accused Russia's state-run gas monopoly Gazprom of blackmail following demands that the Minsk government pay more than double for Russian gas in 2007.

The Belarusian leader vowed not to surrender as last-minute talks to settle the gas row began in Moscow Friday.

Gazprom threatened to cut gas supplies to Belarus on January 1 unless there is an agreement. Belarus vowed retaliation by disrupting Russian gas supplies crossing its territory to Europe.

Under the current agreement expiring on December 31, Belarus pays $46 per 1,000 cubic meters of natural gas. But Gazprom wants Minsk to pay $105 starting in the new year.

Other price disputes with Ukraine and Georgia have been settled.

Although the volume of Russian gas going through Belarus is relatively small, the European Union and Germany have urged the two sides to settle their differences quickly.

Analysts say about 80 percent of Russian gas exports to Europe go through Ukraine and would not be affected by any Russian cut-off to Belarus. Ukraine has offered to help Russia supply gas to Europe in the event of a cut in supplies to Belarus.

Russia briefly cut gas supplies to Ukraine a year ago. The impact of those cuts was felt in much of Europe, and led European governments to voice fears that Moscow had become an unreliable trading partner.

Some information for this report was provided by AP and Reuters.

Source:

http://www.voanews.com/english/2006-12-30-voa2.cfm