New Year Brings Threat of No Gas to Belarus

Russia is close to cutting off the gas to Belarus as 2007 looms around the corner because of price disputes. Gazprom has set a deadline of 0700 GMT Monday morning for new prices to go into effect, but Belarus officials have declined to accept them. The price increase is from 45 dollars per one thousand cubic meters to 105 with one third of that cost being paid for by Belarus pipeline network shares.

Belarus officials argue that they are in an economic and political partnership with Russia and their energy prices should be similar to the prices within Russia. Gazprom and Russian officials discount that argument, claiming that Belarus is a separate country and should pay different prices.

If the gas is shut off, the citizens of Belarus will wake up to a cold 2007 and industry in the country will be affected. The first deputy Prime Minister, Vladmir Semashko, has traveled to Moscow to be involved in the negotiations. This is a positive sign that progress could be made in the final hours before the deadline.

The other concern in this situation is that the flow of Russian gas imports to Europe will be disrupted if the energy supply is shut off. The EU has asked the parties to come to an agreement that will not affect the supplies of energy in Europe.

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