BELARUS NEWS AND ANALYSIS

DATE:

28/12/2006

EU 's Piebalgs calls for rapid end to Russia-Belarus gas dispute

BRUSSELS (AFX) - EU energy commissioner Andris Piebalgs has called for an urgent resolution of the dispute between Russia and Belarus over gas supplies for next year.

'The Commission is following the situation very closely since it may affect gas supplies to the European Union,' Piebalgs said in a statement.

'I call on the two sides to reach as soon as possible a satisfactory agreement that does not put in question gas transits to the EU,' he said.

The commissioner said he will convene a special meeting of the EU's gas coordination group on Jan 4 to evaluate the situation.

The group, made up of representatives from member states, industry and relevant consumer bodies, deals with the security of natural gas supply.

Earlier, Russian press reports said Belarussian president Alexander Lukashenko will end up giving in to Gazprom's demands and accept a steep rise in its Russian gas tariff, in order to avoid even harsher economic sanctions from Moscow.

Gazprom is seeking to more than quadruple the price paid for its gas by Belarus to 200 usd per 1,000 cubic metres from the current price of around 46 usd. The gas giant has threatened to cut off supplies should a contract not be signed before Jan 1, 2007.

Source:

http://www.forbes.com/business/feeds/afx/2006/12/28/afx3285520.html

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