By Yoohwan Kim
Impunity Watch Reporter, Europe
MOSCOW, Russia – On Monday, June 21 Russia’s state-controlled gas monopoly, Gazprom, started to limit the amount of natural gas deliveries to Belarus and warned that supplies could be reduced by as much as 85 percent during the next couple of days. Despite talks between the two countries on Monday morning, it is reported the Belarus owes $192 million to Gazprom for gas supplied over the last six months.
Belarus offered to pay their debt through exchange of machinery, equipment, and various other products. Russian President Dmitry Medvedev rejected Belarus’s offer and stated, “Gazprom cannot accept payment for debt in pies, butter, cheese or other means of payment.” President Medvedev then ordered Gazprom to start restricting gas deliveries by 15% of daily deliveries starting Monday. Belarus is a major gas transit country and provides to Central and Western Europe. The pipelines through Belarus supply about a fifth of Russia’s gas exports westward to Europe, and provides gas to Lithuania, Poland, and Germany.
Russia has been criticized for using their energy supplies as a political weapon. Belarusian President Aleksandr Lukashenko refused to sign a customs union with Russia and Kazakhstan, which was planned to start July 1. Belarus had refused to sign off on the customs reunion, in protest of Russian oil tariffs. The proposed customs union was a Kremlin incentive that was created in 1991, in hope of solidifying a permanent economic alliance with former Soviet republics.
Belarus had previously stated that due to the customs union deal, Russia had provided them with cheap oil prices. After the former post-Soviet ally refused to sign off on the union, Russia increased the price of gas. Russia increased the price of gas supplied to Belarus from last year’s rate of $150 per 1,000 cubic meters of gas to $169.20 during the first quarter of 2010. Russia further raised the price in the second quarter to $184.80.
During a news conference in Minsk, Belarusian first deputy prime minister, Vladimir Semashko, stated, “We will pay – not today perhaps, but possibly within two weeks. We will find a way. Maybe we will have to borrow, but we will pay.”
For more information, please see:
BBC News – Belarus ‘To Pay for Russian Gas Debt’ Within Two Weeks – 21 June 2010
The New York Times – Russia Cuts Gas Deliveries to Belarus – 21 June 2010
Radio Free Europe/Radio Liberty – Russia Reduces Gas Deliveries to Belarus Over Debts – 21 June 2010
RIA Novosti – Belarus Warns Europe of Possible Gas Transit Disruptions – 21 June 2010
