BELARUS NEWS AND ANALYSIS

DATE:

11/01/2007

EU, IEA urge Russia, Belarus to resolve all issues in oil dispute

BRUSSELS (AFX) - The European Commission, the EU's German presidency and International Energy Agency (IEA) called on Russia and Belarus to resolve all aspects of their dispute over oil transit taxes.

"We welcome the information that oil flows have resumed as signs of progress, but continue calling on both sides to reach an immediate and complete resolution of all outstanding issues and guarantee reliability of future deliveries through the pipeline," energy commissioner Andris Piebalgs, German economy secretary of state Joachim Wuermeling and the IEA executive director Claude Mandil said in a statement.

Earlier, Piebalgs convened a meeting of the EU's oil supply group to discuss the bloc's response to the disruption of oil supplies which halted deliveries to several member states from Russia via Belarus.

The group also assessed strategic oil stock levels, and possible methods for withdrawals by individual member states.

The EU currently has supplies to last over 120 days, with undisrupted supplies for EU consumers.

"Oil supplies are not jeopardised, and not threatened," added Wuermeling at a news conference after the meeting.

The commission said close cooperation with the International Energy Agency will continue, including the preparation of a further emergency response if needed.

IEA executive director Claude Mandil said the agency had been prepared to use "all the means at our disposal, including strategic stocks," but judged this was not necessary.

He added that whilst this interruption had not been serious enough to require the use of strategic stocks, "the main lesson is that it could happen".

He said it was a "serious concern" that the EU could be caught up in these pipeline disputes.

Piebalgs added that whilst that whilst adding strategic gas stocks was an option, it was more expensive to store and also more prone to problems with pipelines than oil.

Russian and Belarusian diplomats briefed the meeting to provide information on the latest developments, the commission said.

Source:

http://www.forextelevision.com/FT/AFX/ShowStory.jsp?seq=198060