Russia cuts Belarus gas again as payment row deepens
Thursday, 24 June 2010
MOSCOW, June 23 (Agencies): Russia Wednesday cut gas supplies to Belarus by 60 per cent, escalating further an arrear row between the ex-Soviet neighbours but insisted the move wouldn't impact delivery to European customers.
Gazprom said a US$200 million in payment default on the part of Belarus prompted the state energy giant to suspend the supply.
Belarussian leader Alexander Lukashenko, however, said that he was shutting down transit of Russian gas to Europe-an announcement dismissed by the company's top boss, Alexei Miller.
"We have two pieces of news. One is good, the other is bad," Mr. Miller said in a television interview.
"Transit of Russian gas through the territory of Belarus is being implemented in the full amount and consumers of Russian gas do not experience any problems with it."
"The bad news is the Belarussian side is undertaking no action to settle the debt for Russian gas supplies," he added.
Gazprom initially reduced supplies by 15 per cent Monday and cut them by another 15 per cent Tuesday. It warned Belarus it would eventually cut the deliveries by 85 per cent if it refuses to pay off its debt.
Belarus' Energy Ministry has warned in a letter to the European Commission that cuts of more than 15 per cent could lead to transit shortages.
About 80 per cent of Russian gas exported to Europe normally goes through Ukraine, while the rest is carried via Belarusian pipelines.
Russia has cut gas supplies to both Ukraine and Belarus several times in recent years due to frequent payment feuds, and many European consumers have suffered amid freezing winter temperatures.
Belarus has refused to pay a higher gas price this year and insisted that Russia owes it $260 million in transit fees.
Gazprom said in a statement Wednesday that Belarus had paid for May deliveries at a higher price thus "recognizing the need" to pay the prices that Gazprom insisted on. But Belarus' $192 million debt for the supplies delivered during the first four months of the year is still pending, the company said.
Analysts say the dispute has been sharpened by Lukashenko turning away from traditional reliance on the Kremlin and pursuing closer ties with the European Union.
In recent months Russia and Belarus have often been at loggerheads over energy prices and customs duties, but the latest dispute is the fiercest feud yet between the two ex-Soviet neighbors.
Minsk angered Moscow in May when it pulled out at the last minute from a key summit aimed at creating a joint customs bloc between Russia, Belarus and Kazakhstan, forcing Russia and Kazakhstan to launch the bloc alone.
Lukashenko displeased the Kremlin further when he gave sanctuary to former president Kurmanbek Bakiyev of Kyrgyzstan, who was deposed in a popular uprising in April.
Gazprom said a US$200 million in payment default on the part of Belarus prompted the state energy giant to suspend the supply.
Belarussian leader Alexander Lukashenko, however, said that he was shutting down transit of Russian gas to Europe-an announcement dismissed by the company's top boss, Alexei Miller.
"We have two pieces of news. One is good, the other is bad," Mr. Miller said in a television interview.
"Transit of Russian gas through the territory of Belarus is being implemented in the full amount and consumers of Russian gas do not experience any problems with it."
"The bad news is the Belarussian side is undertaking no action to settle the debt for Russian gas supplies," he added.
Gazprom initially reduced supplies by 15 per cent Monday and cut them by another 15 per cent Tuesday. It warned Belarus it would eventually cut the deliveries by 85 per cent if it refuses to pay off its debt.
Belarus' Energy Ministry has warned in a letter to the European Commission that cuts of more than 15 per cent could lead to transit shortages.
About 80 per cent of Russian gas exported to Europe normally goes through Ukraine, while the rest is carried via Belarusian pipelines.
Russia has cut gas supplies to both Ukraine and Belarus several times in recent years due to frequent payment feuds, and many European consumers have suffered amid freezing winter temperatures.
Belarus has refused to pay a higher gas price this year and insisted that Russia owes it $260 million in transit fees.
Gazprom said in a statement Wednesday that Belarus had paid for May deliveries at a higher price thus "recognizing the need" to pay the prices that Gazprom insisted on. But Belarus' $192 million debt for the supplies delivered during the first four months of the year is still pending, the company said.
Analysts say the dispute has been sharpened by Lukashenko turning away from traditional reliance on the Kremlin and pursuing closer ties with the European Union.
In recent months Russia and Belarus have often been at loggerheads over energy prices and customs duties, but the latest dispute is the fiercest feud yet between the two ex-Soviet neighbors.
Minsk angered Moscow in May when it pulled out at the last minute from a key summit aimed at creating a joint customs bloc between Russia, Belarus and Kazakhstan, forcing Russia and Kazakhstan to launch the bloc alone.
Lukashenko displeased the Kremlin further when he gave sanctuary to former president Kurmanbek Bakiyev of Kyrgyzstan, who was deposed in a popular uprising in April.