
Belarus
digs in heels in gas standoff with Moscow
AFP/Graphic
Graphic showing Gazprom's exports to Russia's immediate western neighbours.
Russia and Belarus remain at loggerheads over their gas dispute, Russian
gas giant Gazprom said, as both sides met for more talks aimed at averting
a January 1 crisis.
AFP
MINSK
Petroleumworld.com 12 29 06
Belarus will not allow Russian natural gas to pass through its territory
to Europe from January 1 without a deal with Moscow on import prices,
Belarussian Prime Minister Sergei Sidorsky said Thursday.
Ukraine, meanwhile, offered to increase transshipment of Russian gas
to makeup for any shortfall if supply through Belarus to Europe is reduced
or cut off.
"If the Russian monopolist is going to be unconstructive in negotiations,
then naturally there will be no transit contract from January 1,"
Sidorsky said in comments broadcast on state television.
"Since Gazprom will not have a contract for transit, we cannot
provide that service," Sidorsky said, referring to Russia's state
gas monopoly Gazprom. "We cannot pump gas through Belarus without
a contract."
Gazprom has threatened to cut natural gas supplies to Belarus from New
Year's Day unless the country accepts a higher price for imports.
The company's vice president accused Belarus of "grotesque blackmail"
for threatening to disrupt Russian natural gas deliveries and suggested
Europe may face shortages, in an interview to be published Friday in
a French newspaper.
If Belarus "takes part of the gas we're directing for our European
clients that crosses its territory, this gas will be missing in the
system," Alexander Medvedev told France's Le Figaro daily. "I
therefore can't exclude a forced rationing of our offer and therefore
shortages for our clients."
Belarus serves as the transit point for roughly 20 percent of Russian
gas flowing to Europe, which faced similar disruptions during a pricing
dispute between Moscow and Ukraine -- which accounts for the other 80
percent -- last winter.
Some five percent of Europe's total gas needs come from Russia via Belarus.
The Belarus prime minister said that "the signing of a contract
on supplies with Belarus is part and parcel of allowing the Russian
company to transit gas ... These issues are inter-linked."
Russian media reported earlier Thursday that Sidorsky and Russian Prime
Minister Mikhail Fradkov had spoken on the phone, as officials from
both sides continued talks in Moscow.
"The conditions for supplying Russian gas to Belarus have been
set and will not be changed," Interfax quoted a Russian government
official as saying after the talks.
In another development Thursday, Ukraine -- which found itself in much
the same position vis-a-vis Moscow a year ago -- announced on Thursday
its readiness to increase the transit of Russian gas through its territory
in case of possible disruptions in supplies to Europe through Belarus.
"We could increase transit with the volume needed to ensure stable
functioning of the economies of our European neighbours," Ukraine's
Energy Minister Yury Boyko said in a statement, adding that he was "concerned"
about a gas pricing crisis between the two countries.
Belarus currently pays Gazprom 46.68 dollars per 1,000 cubic metres
of gas.
Gazprom originally demanded an increase to 200 dollars, which is closer
to western European prices, unless Belarus agreed to sell 50 percent
of its domestic pipeline operator Beltransgaz.
Gazprom has since reduced that demand to 105 dollars per 1,000 cubic
metres -- 75 dollars per 1,000 cubic metres in cash payments, plus the
equivalent of another 30 dollars in shares of Beltransgaz.
AFP
28 2216 GMT 12 06
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