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Merkel attacks Russian oil cuts Russia 'forced into oil shutdown'
(about 1 hour later)
Russia's decision to sever oil supplies to Europe was "unacceptable", German Chancellor Angela Merkel has said. Russia has said the decision to stop pumping oil through a key pipeline to Europe was out of its hands.
The comments came as officials from Belarus and Russia began talks aimed at resolving an energy dispute which led to the pipeline shutdown.
Russia has been condemned by the European Union EU for cutting off its oil supplies without consultation.
The move was dubbed "unacceptable" and one that "destroyed trust" by German chancellor Angela Merkel.
Ms Merkel also said the current conflict illustrated that Europe's energy sources should be more diverse.
European Commission President Jose Manuel Barroso had said earlier that energy companies should not be allowed to cut off oil supplies unannounced.European Commission President Jose Manuel Barroso had said earlier that energy companies should not be allowed to cut off oil supplies unannounced.
Meanwhile, Russia's president has told his government to work hard to protect the interests of its oil customers. However, Russian Energy Minister Viktor Kristenko the row with Belarus which led to the pipeline closure constituted a "force majeure" - which means events are beyond the country's control and it is free of its obligations.
Their comments came as talks between Belarus and Russia aimed at resolving a row over oil supplies began in Moscow. Supply questions
Russia halted oil exports to Belarus on Monday, accusing Minsk of stealing oil. Russia stopped oil exports to Belarus on Monday - halting exports to Germany, Poland and beyond - accusing Minsk of stealing oil.
'Alternative supplies' It's necessary to secure the interests of Russian companies that have obviously encountered losses Vladimir Putin href="/1/hi/business/6244855.stm" class="">Q&A: Pipeline shutdown href="/1/hi/world/europe/6243157.stm" class="">Analysis: Oil row
Ms Merkel added that cutting supplies without consultation "destroyed trust". The European Commission is convening its oil supply group on Thursday to discuss the impact of the shut-off, amid reports that some refiners are now being affected.
Earlier she told German TV the row also showed that Europe needs to diversify its energy sources, just ahead of meeting the EU Energy Commissioner as Germany took over the presidency of the European Union. Meanwhile, Russian president Vladimir Putin has told his government to do everything in their power to protect the interests of its oil customers.
The European Commission is convening its oil supply group on Thursday to discuss the impact of the cuts, amid reports that some refiners are now being affected. However, he has also warned that the country may have to cut oil output - which some experts suggest is a sign he hoping to force a Belarusian climb down.
In a statement, it warned that the current situation made clear the need for Europe to reduce its dependence on imported oil and gas - a focus of its energy review, due to be unveiled on Wednesday. "It's necessary to secure the interests of Russian companies that have obviously encountered losses," Mr Putin added.
European legislation requires member states to hold emergency stocks, which the commission said stood at more than 120 days.
The International Energy Agency (IEA), a multilateral energy think-tank, has said that this means European oil markets should be able to cope with the shutdown.
It added that even if the shut-off was a prolonged one, refineries "could source crude supplies from alternative routes, and some of them are already organising alternative supplies".
Azerbaijan also is in dispute with Russia and has suspended oil exports to Russia following a pricing dispute with state-backed gas giant Gazprom.
'No threat''No threat'
Belarus has been rowing with Russia over charges relating to oil and gas. Despite the pipeline closure, European markets should be able to cope with the drop in exports, the International Energy Agency (IEA), a multilateral energy think-tank said.
Russia has been pushing prices higher, and also started to charge duties on its crude oil shipments - which had previously been duty-free, on the understanding that profits from refined oil should have been shared. European legislation requires member states to hold emergency stocks, which the European Commission said stood at more than 120 days.
The outcast status of Belarus gives it the benefit of invulnerability, which its government uses in full Natalia Leschenko, Global Insight href="/1/hi/business/6244855.stm" class="">Q&A: Pipeline shutdown href="/1/hi/world/europe/6243157.stm" class="">Analysis: Oil row The IEA added that even if the shut-off was a prolonged one, refineries "could source crude supplies from alternative routes, and some of them are already organising alternative supplies".
Russia's moves prompted Belarus to impose a transit tax on the Russian oil being shipped through pipelines that transited its territories. Azerbaijan is also in dispute with Russia and has suspended oil exports to Russia following a pricing dispute with state-backed gas giant Gazprom.
Row deepens
Russia has been pushing prices higher and also started to charge duties on its crude oil shipments.
Russia's moves prompted Belarus to impose a transit tax on the Russian oil being shipped through pipelines that crossed its territories.
It then launched a legal action against Transneft when the Russian oil pipeline monopoly refused to pay the charges.It then launched a legal action against Transneft when the Russian oil pipeline monopoly refused to pay the charges.
Belarus has said it is ready to negotiate over its decision to introduce a $45 (£23) per tonne charge for oil shipped through its territory.Belarus has said it is ready to negotiate over its decision to introduce a $45 (£23) per tonne charge for oil shipped through its territory.
The wrangle prompted Russia to shut off the transcontinental pipeline through Belarus, halting the flow of oil to Germany, Poland and beyond.
Escalating rows
The latest energy wrangle comes almost a year after deliveries of Russian natural gas to much of Western Europe were disrupted during a dispute over pricing between Russia and Ukraine.The latest energy wrangle comes almost a year after deliveries of Russian natural gas to much of Western Europe were disrupted during a dispute over pricing between Russia and Ukraine.
However the current row between Moscow and Minsk is resolved, Natalia Leschenko, an analyst at Global Insight, said she expected it to end soon - and at the expense of Russia.
"Transneft and the Russian government are looking to face financial losses and damaged reputation, whereas the outcast status of Belarus in Europe gives it the benefit of invulnerability, which its government uses in full," she said.