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Belarus gas row 'may hurt Europe' | Belarus gas row 'may hurt Europe' |
(about 3 hours later) | |
Russian energy giant Gazprom has warned that its gas price dispute with Belarus may affect consumers across Europe. | Russian energy giant Gazprom has warned that its gas price dispute with Belarus may affect consumers across Europe. |
Gazprom has threatened to cut off gas supplies to Belarus unless it accepts an increase in prices from 1 January. | Gazprom has threatened to cut off gas supplies to Belarus unless it accepts an increase in prices from 1 January. |
Belarus responded that if supplies were cut, it would deny Gazprom access to its pipelines, in a move that could hurt supplies elsewhere in Europe. | Belarus responded that if supplies were cut, it would deny Gazprom access to its pipelines, in a move that could hurt supplies elsewhere in Europe. |
A clash between Ukraine and Russia over pricing last winter was blamed for a surge in UK consumer gas bills. | A clash between Ukraine and Russia over pricing last winter was blamed for a surge in UK consumer gas bills. |
Reports from Belarus's capital, Minsk, said residents there had stocked up on warm clothing in anticipation of a shutdown next week. | Reports from Belarus's capital, Minsk, said residents there had stocked up on warm clothing in anticipation of a shutdown next week. |
"If a gas supply contract for next year is not reached, Gazprom will have no grounds for deliveries of gas to Belarus as of 10 am Moscow time (0700 GMT) on 1 January, 2007," Gazprom chief executive Alexei Miller said. | |
Still running | Still running |
Earlier on Wednesday, Belarus had said that it did not expect Gazprom to cut off its gas on New Year's Day despite the problems. | Earlier on Wednesday, Belarus had said that it did not expect Gazprom to cut off its gas on New Year's Day despite the problems. |
"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. |
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. |
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) | 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 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 Belarusian gas supplies. | Mr Semashko suggested that Belarus would not allow Gazprom's supplies to pass through its territory if the company cut off Belarusian 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." |
Gazprom had written to partners in Lithuania, Poland and Germany "about the gas supply situation occurring with Belarus", said chief executive Alexei Miller. | Gazprom had written to partners in Lithuania, Poland and Germany "about the gas supply situation occurring with Belarus", said chief executive Alexei Miller. |
New deals | New deals |
Russia says its neighbours have been paying below-market rates and these now need to be brought into line with European prices. | Russia says its neighbours have been paying below-market rates and these now need to be brought into line with European prices. |
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. |
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. |
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. |
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 Belarusian counterpart, Alexander Lukashenko, met in an effort to resolve the issue, but made little progress. | Last week, Russian president Vladimir Putin and his Belarusian counterpart, Alexander Lukashenko, met in an effort to resolve the issue, but made little progress. |
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. |