Russia cuts gas supply to Belarus over debt

Release Date: 2010-06-21

President Medvedev has ordered Russia's state-owned gas producer to cut supplies to Belarus after Minsk failed to pay its debt.

On Monday, the two sides met in Moscow in an attempt to reach an agreement. Belarus recognized its $200 million debt, but refused to repay the sum in cash, instead offering payment in machinery, equipment and other commodities.

The Russian president said such an offer was unacceptable and that a conventional payment must be made.

The cut limit will start with 15 per cent reduction and is going to reach 85 per cent of the supply volume.

Gazprom CEO Aleksey Miller said that the remaining 15 per cent will enable Belarus to keep its gas pipeline network in a working condition until the debt is paid off.

Moscow says the restrictions will not affect its European consumers, as more fuel will be pumped through Ukrainian territory.

Source: Russia Today

Type:

NORMAL