Russia's Gazprom cuts gas deliveries to Belarus by 40 pct

Release Date: 2010-06-23

The gas dispute between Russia and Belarus continued on Wednesday as gas export monopoly Gazprom extended supply cuts to Minsk but promised no interruption of supplies to European consumers.

"From 10:00 a delivery cut to 60 percent (of planned supply) has been introduced," Chief Executive Alexei Miller told a commission which gathered to discuss the row.

Gazprom began gradually reducing supplies to Belarus on Monday with a 15 percent cut, but threatened to cut supplies by 85 percent if Minsk did not pay its $200 million gas debt.

Belarus has refused to pay the Russian gas price, set at $169 per 1,000 cubic meters for the first quarter of the year and $185 for the second quarter, and has been paying only $150 since January 1.

Belarusian President Alexander Lukashenko said on Tuesday he had found money to pay for the gas but argued that Gazprom owed Minsk for transit fees and suggested cancelling the debt. He said he had ordered suspension of Russian gas supplies to Europe, potentially affecting 6.25 percent of consumers.

Russia has agreed with Ukraine, another gas transit nation, to reroute gas via the Ukrainian pipeline system. Miller said on Wednesday there had been no interruption in pumping.

"Gas is transiting via Belarus in full volume and consumers of Russian gas are having no problems with delivery," Miller said.
Negotiations between Gazprom and Belarus will continue on Wednesday.

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