Talks between Russia and Belarus over new gas prices collapsed yesterday as fears grew of a repeat of last year's energy cuts in eastern Europe that could leave millions of people out in the cold by January 1.
Gazprom, the giant state-owned gas company that has clashed with western energy companies this year, has threatened to cut gas to Belarus if the two sides cannot agree on a price for next year, in a battle recalling Russia's dispute with Ukraine that led to shortages in Europe last winter.
Gazprom, the giant state-owned gas company that has clashed with western energy companies this year, has threatened to cut gas to Belarus if the two sides cannot agree on a price for next year, in a battle recalling Russia's dispute with Ukraine that led to shortages in Europe last winter.
However, Russian industry sources said that supplies to western Europe would not be jeopardised by the dispute with Belarus, through which pipelines run connecting Russia with Poland and Germany.
Gazprom spokesman Sergei Kupriyanov said there was no need for alarm in Europe should Gazprom cut the fuel supply to Belarus, Russia's traditional ally with whom it forms a loose political union.
"Regarding our international transit we are fully prepared to honour our contractual obligations," Mr Kupriyanov said.
He added that the company had stockpiled enough gas to ensure Poland and Germany, the primary recipients of Russian gas through pipelines in Belarus, were not left out in the cold.
Gazprom has been in talks with other former Soviet states over increases in gas prices as the state monopoly continues to assert its strength in the market place.
Georgia, whose western-leaning leadership has accused Russia of using its energy might to apply political pressure on it, agreed on Friday to pay Gazprom $235 (£115) per 1,000 cubic metres, more than double this year's price, in order to avoid having its supplies cut off. Moldova has agreed to a 6.3% increase.
Gazprom also said it may halt supplies to Azerbaijan in the Caucasus, saying the Azeris had shown no interest in buying Russian gas at higher prices in 2007.
Gazprom chief executive Alexei Miller and Belarussian first deputy prime minister Vladimir Semashko met in Moscow on Tuesday to hammer out a deal before the current contract ends on New Year's Eve, though no progress was made.
Gazprom had been asking Belarus to pay $200 per 1,000 cubic metres but offered to cut the price down to $110, of which Belarus would pay only $80, Mr Kupriyanov said yesterday. Belarus is currently paying around $47 per 1,000 cubic metres.
Under the deal Belarus would pay off the remainder by giving Gazprom 50% of its state-owned gas transport network, Beltransgaz, Mr Kupriyanov said.
At a meeting with foreign reporters at his suburban residence in September, President Vladimir Putin commented on criticism from the West over last year's gas spat with Ukraine by saying that if Western countries were so keen on Russia's neighbours getting cheap gas they should subsidise the cut-rate prices themselves.
Gazprom spokesman Sergei Kupriyanov said there was no need for alarm in Europe should Gazprom cut the fuel supply to Belarus, Russia's traditional ally with whom it forms a loose political union.
"Regarding our international transit we are fully prepared to honour our contractual obligations," Mr Kupriyanov said.
He added that the company had stockpiled enough gas to ensure Poland and Germany, the primary recipients of Russian gas through pipelines in Belarus, were not left out in the cold.
Gazprom has been in talks with other former Soviet states over increases in gas prices as the state monopoly continues to assert its strength in the market place.
Georgia, whose western-leaning leadership has accused Russia of using its energy might to apply political pressure on it, agreed on Friday to pay Gazprom $235 (£115) per 1,000 cubic metres, more than double this year's price, in order to avoid having its supplies cut off. Moldova has agreed to a 6.3% increase.
Gazprom also said it may halt supplies to Azerbaijan in the Caucasus, saying the Azeris had shown no interest in buying Russian gas at higher prices in 2007.
Gazprom chief executive Alexei Miller and Belarussian first deputy prime minister Vladimir Semashko met in Moscow on Tuesday to hammer out a deal before the current contract ends on New Year's Eve, though no progress was made.
Gazprom had been asking Belarus to pay $200 per 1,000 cubic metres but offered to cut the price down to $110, of which Belarus would pay only $80, Mr Kupriyanov said yesterday. Belarus is currently paying around $47 per 1,000 cubic metres.
Under the deal Belarus would pay off the remainder by giving Gazprom 50% of its state-owned gas transport network, Beltransgaz, Mr Kupriyanov said.
At a meeting with foreign reporters at his suburban residence in September, President Vladimir Putin commented on criticism from the West over last year's gas spat with Ukraine by saying that if Western countries were so keen on Russia's neighbours getting cheap gas they should subsidise the cut-rate prices themselves.
Source: The Guardian
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