BELARUS NEWS AND ANALYSIS

DATE:

30/12/2006

Belarus to Suspend Oil Contracts with Russia in Energy Dispute

By VOA News

The government-run oil firm in Belarus, Belneftekhim, has suspended all of next year's oil delivery contracts with Russian companies.

Belarusian officials Saturday said the move is a retaliation for Russia's introduction of duties on crude oil exports to Belarus. Russian oil exports to Belarus were previously tax-exempt, but Moscow has imposed a new tax of about $180 per ton of oil starting in the new year.

Meanwhile, a delegation from Belarus is in Moscow in a last-minute attempt to settle a natural gas pricing dispute.

Russia's state-run gas monopoly, Gazprom, says it will cut off gas supplies to Belarus beginning Monday unless an agreement is reached.

Belarus now pays $46 per 1,000 cubic meters of natural gas. But Gazprom wants Minsk to pay $105 starting in the new year.

Belarus has vowed retaliation by disrupting Russian gas supplies crossing its territory to Europe.

Some information for this report was provided by AP and Reuters.

Source:

http://voanews.com/english/2006-12-30-voa20.cfm

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