BELARUS NEWS AND ANALYSIS

DATE:

27/12/2006

Minsk-Moscow gas dispute threatens transit to EU

The smooth flow of Europe's winter energy supply from Russia is in doubt. Belarus is threatening to stop gas transit. It is in a row with Moscow over how much it is willing to pay for its domestic needs. On January 1st, the Russians are threatening to cut off their friends in Belarus. A source at Russia's Gazprom likened the standoff to last year's with Ukraine.

A company spokesman said concessions were ending: "Gazprom is not Santa Claus."

Gazprom said it has cut its price proposal to $105 per 1,000 cubic metres. Belarus now pays just over $46. Minsk has rejected a price break consisting of handing over its distribution company.

Critics have already accused Moscow of using energy to exert political pressure on neighbours, and Russia is trying to cultivate a 'reliable supplier image' with its EU customers.

Source:

http://euronews.net/create_html.php?page=detail_info&article=398146&lng=1