BELARUS NEWS AND ANALYSIS

DATE:

03/08/2007

Belarus chief vows to settle Russia gas debt

MOSCOW

BELARUSSIAN President Alexander Lukashenko said yesterday he had ordered his government to pay back a US$456 million ($694 million) debt to Russia for gas supplies after Moscow threatened to halve gas deliveries from today.

"I gave an order to the government to take this money from our reserves and pay US$460 million for Russian gas. It is not a huge sum for our country," RIA Novosti quoted Lukashenko as saying.

"Although our reserve fund will be a bit empty, other countries such as (Venezuelan President Hugo) Chavez as well as commercial banks are ready to come to rescue."

Gazprom's threat echoed previous disputes between Russia and its neighbours Belarus and Ukraine which led to gas and oil supply cuts to Europe in the past three winters, underlying Europe's heavy dependance on Russian energy resources.

On Wednesday, Gazprom, the world's top gas producer that supplies a quarter of Europe's needs, said it would continue to pump gas exports across Belarus.

But it also notified customers in over 20 European countries that it was prepared to use alternative routes and take legal action if Belarus siphons off gas from transit pipelines.

Both Gazprom and analysts said any potential supply disruptions in Europe would be limited, as gas demand is relatively low in the summer.

Analysts also said Moscow's threat was not only driven by the gas debt dispute, but rather by Russia's desire to force Belarus to sell more assets.AFP

Source:

http://www.bruneitimes.com.bn/details.php?shape_ID=38714