BELARUS NEWS AND ANALYSIS

DATE:

23/01/2007

Belarusian leader vows to find alternative to oil from Russia

Belarus President Alexander Lukashenko slammed Moscow today for a series of energy deals that have sharply raised prices and cut revenues for Belarus, vowing in a defiant speech to find oil from sources other than Russia.

The two formerly close allies have seen relations plummet in recent months amid a clash over Russian natural gas and oil supplies.

Lukashenko, who relied heavily on cheap Russian energy to fuel his country's centrally controlled economy, grudgingly agreed to pay more than twice the previous price for gas this year - and even more in coming years.

And two weeks ago, Russia forced Belarus to back down in a dispute over oil supplies and transit fees, forcing a deal that will reduce the profits Belarus makes by refining Russian oil and selling the products.

The dispute briefly disrupted oil supplies to Europe.

Speaking during a visit to an oil refinery north-east of the capital Minsk, Lukashenko slammed both the oil and the gas deals, calling both were "extremely disadvantageous."

"Russia has its own unique resource: hydrocarbons. Our strategic resource is our geopolitical position. We should use this just like Russia uses its resources," he said.

Source:

http://www.irishexaminer.com/breaking/story.asp?j=89001816&p=89xxzyy8&n=89002196