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Belarus firm on Russia gas demand | Belarus firm on Russia gas demand |
(about 3 hours later) | |
Belarus has said it does not expect Russian energy giant Gazprom to cut off its gas on New Year's Day, despite a row over the cost of supplies. | Belarus has said it does not expect Russian energy giant Gazprom to cut off its gas on New Year's Day, despite a row over the cost of supplies. |
"There will be gas on 1 January," said Belarus' Deputy Prime Minister Vladimir Semashko after returning from failed talks on the issue in Moscow. | "There will be gas on 1 January," said Belarus' Deputy Prime Minister Vladimir Semashko after returning from failed talks on the issue in Moscow. |
However, reports from Minsk said residents there had stocked up on warm clothing in anticipation of a shutdown. | However, reports from Minsk said residents there had stocked up on warm clothing in anticipation of a shutdown. |
Gazprom says Belarus must pay more than double the old price for gas from 2007. | Gazprom says Belarus must pay more than double the old price for gas from 2007. |
Belarus currently pays $47 per 1,000 cubic metres for the gas it imports from Gazprom, Russia's state-owned gas monopoly. | Belarus currently pays $47 per 1,000 cubic metres for the gas it imports from Gazprom, Russia's state-owned gas monopoly. |
RUSSIAN GAS COSTS FOR 2007 Ukraine: $130 for 1,000 cubic metres (was $95)Georgia: $235 ($110)Moldova: $170 ($160)Belarus: Gazprom wants $110 ($47)Azerbaijan: Gazprom wants $235 ($110) | |
Mr Semashko told journalists that a "preliminary agreement" had been reached on raising the price to $75, but Gazprom had unexpectedly repeated previous demands that prices should go up to $110. | Mr Semashko told journalists that a "preliminary agreement" had been reached on raising the price to $75, but Gazprom had unexpectedly repeated previous demands that prices should go up to $110. |
Mr Semashko described this as a provocation, according to the Russian news agency Itar-Tass. | Mr Semashko described this as a provocation, according to the Russian news agency Itar-Tass. |
Gazprom also wants Belarus to hand over a 50% share of the country's distribution network, including a valuable transit pipeline which supplies gas to Poland and Germany. | Gazprom also wants Belarus to hand over a 50% share of the country's distribution network, including a valuable transit pipeline which supplies gas to Poland and Germany. |
Mr Semashko suggested that Belarus would not allow Gazprom's supplies to pass through its territory if the company cut off Belarussian gas supplies. | Mr Semashko suggested that Belarus would not allow Gazprom's supplies to pass through its territory if the company cut off Belarussian gas supplies. |
"We are mutually dependent," he said. "If I don't have a domestic gas supply contract, Gazprom won't have a transit deal." | "We are mutually dependent," he said. "If I don't have a domestic gas supply contract, Gazprom won't have a transit deal." |
'Strong-arm' tactics | 'Strong-arm' tactics |
The dispute has strained relations between Russia and Belarus, which are traditional allies. | The dispute has strained relations between Russia and Belarus, which are traditional allies. |
Last week, Russian president Vladimir Putin and his Belarussian counterpart, Alexander Lukashenko, met in an effort to resolve the issue, but made little progress. | Last week, Russian president Vladimir Putin and his Belarussian counterpart, Alexander Lukashenko, met in an effort to resolve the issue, but made little progress. |
The dispute is similar to recent rows Russia has had with Ukraine and Georgia over what they pay for its gas. | The dispute is similar to recent rows Russia has had with Ukraine and Georgia over what they pay for its gas. |
Russia temporarily cut off gas supplies to Ukraine in January after a quarrel over pricing. | Russia temporarily cut off gas supplies to Ukraine in January after a quarrel over pricing. |
Moscow says its neighbours have been paying below-market rates and these now need to be brought into line with European prices. | Moscow says its neighbours have been paying below-market rates and these now need to be brought into line with European prices. |
Critics argue Moscow is using strong-arm tactics to consolidate its economic supremacy in the region, at a time when high demand for energy and fears of supply shortages have strengthened its position as Europe's leading gas supplier. | Critics argue Moscow is using strong-arm tactics to consolidate its economic supremacy in the region, at a time when high demand for energy and fears of supply shortages have strengthened its position as Europe's leading gas supplier. |
Analysts said a hefty price rise over the winter could further undermine Belarus' struggling, largely state-controlled, economy. | Analysts said a hefty price rise over the winter could further undermine Belarus' struggling, largely state-controlled, economy. |
Last week, Georgia agreed to pay $235 for 1,000 cubic metres of gas, more than twice the previous price of $110. | Last week, Georgia agreed to pay $235 for 1,000 cubic metres of gas, more than twice the previous price of $110. |
Moscow has also renegotiated its gas contract with Bulgaria, which will see the latter pay up to 45% more for its gas imports over the next five years. | Moscow has also renegotiated its gas contract with Bulgaria, which will see the latter pay up to 45% more for its gas imports over the next five years. |