BELARUS NEWS AND ANALYSIS

DATE:

03/08/2007

EU gas meeting off as Russia, Belarus solve supply row

(BRUSSELS) - The European Commission on Friday welcomed a last-minute deal between Russia and Belarus which averted the threat of a gas supply cut.

The EU's executive arm said it was scrapping plans to convene the EU's gas coordination group after Russia withdrew its threat to slash supplies to Belarus, a key transit country for Europe, in a row over money.

"We welcome the development over the past hours," said Commission spokesman Martin Selmayr. "There is no longer the need to call an urgent meeting of the gas coordination group".

The EU's executive arm sent out the meeting invitations on Thursday while Russia was still threatening to cut its natural gas supplies to Belarus by 45 percent due to unpaid bills.

Russian energy giant Gazprom on Friday backed down from its threat after Belarus began repayment of nearly half a billion dollars in overdue debt for past supplies.

Belarus is a key transit country for Russian oil and gas supplies to western Europe. About 20 percent of Russian gas imports to European Union nations transit through Belarus, mainly to Poland, Germany and Lithuania.

A dispute over prices led to disruptions in oil supplies to several European countries earlier this year.

A similar dispute over gas prices with Ukraine, another key transit country, last year prompted cut-offs to western Europe and a wide debate about Europe's increasing reliance on Russian energy imports.

The Gas Coordination Group was established by an EU law dealing with measures to safeguard security of natural gas supply and is composed of the representatives of member states, representative bodies of the industry concerned and of relevant consumers. It is chaired by the Commission.

Source:

http://www.eubusiness.com/Energy/russia-belarus-gas.80

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