BELARUS NEWS AND ANALYSIS

DATE:

09/01/2007

Belarus Oil Blockage May Affect Russia's Oil Supremacy

Disruption of oil supplies to Europe was destroying confidence in Moscow, German chancellor said.

Russia's oil pipeline cutoff, no matter which country is to blame for it, was "not acceptable," Germany's chancellor Angela Merkel said Tuesday.

"It's not acceptable, we believe, for either a supplier or transit countries to take measures that impact on the partners without consultations," EU President Jose Manuel Barroso said in Berlin.

European Union may have to diversify its sources of energy to reduce dependence on any one big supplier, EU President also said.

The cutoff, conducted by transit country Belarus during Russia's national holiday, presents no immediate threat to European oil supplies. However, Russia's long-term reliability as a major source of the natural gas and oil that keeps Europe's economy running and its homes heated and lit is now under question.

"It is not acceptable when there are no consultations about such actions," Merkel said after talks with Barroso in Berlin, as quoted by Forbes.

"That always destroys trust and no trusting, undisturbed cooperation can be built on that."

On Monday, Belarus stopped the oil flow to Europe via the pipeline that crosses Belarus, after Russian accused its neighbor of siphoning off oil.

Belarus claims its decision to cut off Russian oil to Europe is a response to Russian decision to impose hefty duties on oil exports to Belarus.

Source:

http://www.torontodailynews.com/index.php/BusinessNews/2007010908belarus-oil