BELARUS NEWS AND ANALYSIS

DATE:

03/08/2007

Gazprom may save Belarus supplies

LONDON. August 3. KAZINFORM - Gazprom, Russia's state-owned gas monopoly, has said it hopes to maintain supplies to Belarus after a spat between the countries appeared to calm.

Gazprom had threatened to halve supplies to the former Soviet republic, saying it had run up a $456m (?225m) bill for previous shipments.

But on Thursday, Belarus said that the bill would be paid.

The incident is a repeat of supply disputes with ex-Soviet republics seen in 2005 and 2006.

"The latest statements from Belarus are hopeful signals," said Gazprom spokesman Sergei Kupriyanov.

"A delegation from Belarus arrives tomorrow and talks will continue. We still have time to reach a deal."

Subsidies argument

Belarus had previously said it needed more time to pay, blaming Gazprom's doubling of the price it charged for the gas earlier in the year.

Belarussian president Alexander Lukashenko accused Russia of launching a hostile economic takeover of his country.

Moscow denies accusations that it uses gas supplies to bully its neighbours.

Instead, it insists that price rises last year for Belarus, Ukraine and Georgia merely reflect the end of Soviet-era subsidies.

At the end of 2006, Belarus was within minutes of seeing its gas supplies cut when it agreed to start paying $100 per 1,000 cubic metres, compared with a previous price of $47.

Ukraine was also forced to start paying more for its Russian gas in 2006, but not before Gazprom reduced its supplies, leading to a knock-on reduction in gas passing through the country to western Europe.

This dispute sparked concern within European Union nations about their energy security and the future reliably of Russian gas, which now accounts for much of European requirements, Kazinform refers to BBC News

Source:

http://www.inform.kz/showarticle.php?lang=eng&id=154044