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Russia-Belarus gas deal reached | Russia-Belarus gas deal reached |
(about 8 hours later) | |
Russia and Belarus have reached a deal on gas supplies after Moscow threatened to cut supplies to its neighbour if a big price rise was not agreed. | |
This came after last-ditch talks in Moscow ahead of a deadline. | This came after last-ditch talks in Moscow ahead of a deadline. |
Describing it as "unfortunate terms", Belarus said it would pay $100 per 1,000 cubic metres of gas, below the $105 demanded by Russia. | Describing it as "unfortunate terms", Belarus said it would pay $100 per 1,000 cubic metres of gas, below the $105 demanded by Russia. |
Russia had threatened to halt supplies at 1000 (0700GMT) on Monday unless Belarus more than doubled its payments. | Russia had threatened to halt supplies at 1000 (0700GMT) on Monday unless Belarus more than doubled its payments. |
"The Belarussian side, in a difficult atmosphere on the eve of the new year, signed an agreement on unfortunate terms," Belarussian Deputy Prime Minister Vladimir Semashko said. | "The Belarussian side, in a difficult atmosphere on the eve of the new year, signed an agreement on unfortunate terms," Belarussian Deputy Prime Minister Vladimir Semashko said. |
Gazprom CEO Alexei Miller said the deal was done at 2358 (2058GMT), adding that Belarus had been offered "the best conditions". | Gazprom CEO Alexei Miller said the deal was done at 2358 (2058GMT), adding that Belarus had been offered "the best conditions". |
Both nations have accused each other of blackmail over the dispute. | Both nations have accused each other of blackmail over the dispute. |
About 20% of Russian gas exports to Europe pass through Belarus, the remainder through Ukraine. Belarus had threatened to disrupt Russian gas supplies to Western Europe. | About 20% of Russian gas exports to Europe pass through Belarus, the remainder through Ukraine. Belarus had threatened to disrupt Russian gas supplies to Western 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. |
Energy diplomacy | Energy diplomacy |
Russia has been accused of using its energy muscle to re-impose 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 re-impose its will on what is sometimes called Russia's "near abroad" - the countries that were once part of the Soviet Union. |
Relations between the two countries have become fractious | Relations between the two countries have become fractious |
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 reflected market prices. | Gazprom insists the planned rise from $47 to $105 merely reflected 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. |
European Union countries in particular were keen to avoid a repeat of the gas shortages which accompanied the Russia-Ukraine dispute. | European Union countries in particular were 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 has also warned Belarus against doing the same thing. | At that time, Gazprom accused Ukraine of siphoning off gas meant for Europe, and has also warned Belarus against doing the same thing. |