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Tensions rise in Belarus gas row | Tensions rise in Belarus gas row |
(about 5 hours later) | |
Belarus and Russia have traded accusations of "blackmail" in their dispute over gas prices. | Belarus and Russia have traded accusations of "blackmail" in their dispute over gas prices. |
Russian state-controlled energy giant Gazprom wants to raise the price Belarus pays by 123%, threatening a cut-off at 0700 GMT on New Year's Day. | Russian state-controlled energy giant Gazprom wants to raise the price Belarus pays by 123%, threatening a cut-off at 0700 GMT on New Year's Day. |
While negotiations continue in Moscow, however, Belarus Prime Minister Alexander Lukashenko has said he will not agree to the price rise. | While negotiations continue in Moscow, however, Belarus Prime Minister Alexander Lukashenko has said he will not agree to the price rise. |
The stand-off could see a reduction in supplies to Europe. | The stand-off could see a reduction in supplies to Europe. |
It echoes a fierce row last year between Russia and Ukraine, and comes as Russia is pushing up prices for many of its customers. | It echoes a fierce row last year between Russia and Ukraine, and comes as Russia is pushing up prices for many of its customers. |
"Belarus won't bow to Gazprom's blackmail," Mr Lukashenko said, according to Belarus state news agency BeITA. | "Belarus won't bow to Gazprom's blackmail," Mr Lukashenko said, according to Belarus state news agency BeITA. |
"If they keep putting pressure on us we will go down into the bunkers, but we will not surrender." | "If they keep putting pressure on us we will go down into the bunkers, but we will not surrender." |
RUSSIAN GAS COSTS FOR 2007 Ukraine: $130 for 1,000 cubic metres (was $95)Georgia: $235 ($110)Moldova: $170 ($160)Belarus: Gazprom wants $105 ($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 $105 ($47)Azerbaijan: Gazprom wants $235 ($110) |
Earlier on Friday, Gazprom vice-president Alexander Medvedev was quoted by France's Le Figaro newspaper as calling Belarus's tactics of warning of shortages in Europe a "grotesque blackmail". | Earlier on Friday, Gazprom vice-president Alexander Medvedev was quoted by France's Le Figaro newspaper as calling Belarus's tactics of warning of shortages in Europe a "grotesque blackmail". |
Talks are due to continue on Saturday after the sides failed to reach an agreement on Friday. | |
Energy diplomacy | Energy diplomacy |
Russia has been accused of using its energy muscle to reimpose its will on what is sometimes called Russia's "near abroad" - the countries that were once part of the Soviet Union. | Russia has been accused of using its energy muscle to reimpose its will on what is sometimes called Russia's "near abroad" - the countries that were once part of the Soviet Union. |
Although some of the targeted countries, such as Ukraine and Georgia, have strained relations with the Kremlin, Belarus has historically remained an ally throughout the post-Soviet period. | Although some of the targeted countries, such as Ukraine and Georgia, have strained relations with the Kremlin, Belarus has historically remained an ally throughout the post-Soviet period. |
Gazprom insists the planned rise from $47 to $105 merely reflects market prices. | Gazprom insists the planned rise from $47 to $105 merely reflects market prices. |
However, as has been the case with Belarus, the price rises are often coupled to demands for shared ownership of those countries' gas or oil distribution networks. | However, as has been the case with Belarus, the price rises are often coupled to demands for shared ownership of those countries' gas or oil distribution networks. |
A half-share in Belarus' gas monopoly Beltransgaz, which operates its own pipelines and Gazprom's export pipeline, is up for grabs - but only, says the government in Minsk, if the price of gas stays lower. | A half-share in Belarus' gas monopoly Beltransgaz, which operates its own pipelines and Gazprom's export pipeline, is up for grabs - but only, says the government in Minsk, if the price of gas stays lower. |
People in Belarus may have to wrap up even warmer at New Year | People in Belarus may have to wrap up even warmer at New Year |
Russia's gas customers, meanwhile, are urging that a deal be struck as soon as possible. | Russia's gas customers, meanwhile, are urging that a deal be struck as soon as possible. |
Europe, in particular - which gets about 5% of its supplies via Belarus, accounting for a fifth of the country's exports - is keen to avoid a repeat of the gas shortages which accompanied the Russia-Ukraine dispute. | Europe, in particular - which gets about 5% of its supplies via Belarus, accounting for a fifth of the country's exports - is keen to avoid a repeat of the gas shortages which accompanied the Russia-Ukraine dispute. |
At that time, Gazprom accused Ukraine of siphoning off gas meant for Europe, and is now warning Belarus against doing the same thing. | At that time, Gazprom accused Ukraine of siphoning off gas meant for Europe, and is now warning Belarus against doing the same thing. |