EU holds Russia-Belarus talks in Moscow

09-01-2007

EU holds Russia-Belarus talks in Moscow
Negotiations between Russia and Belarus are to begin in Moscow today as the two countries seek to resolve their energy dispute.

Yesterday supplies of Russian crude oil to Germany, Poland and Ukraine were cut off as the rumbling spat between the two countries finally resulted in concrete action.

Russian pipeline operator Transneft had claimed yesterday that Belarus was siphoning oil from the Druzhba pipeline, which carries about a third of its exports to the EU. It cut off supplies as a result.

Twenty-two million tonnes and 18 million tonnes of oil are destined for Germany and Poland through the pipeline respectively.

EU spokesperson Ferran Tarradellas, seeking to give reassurance about the security of energy supplies, yesterday said: "I would like to underline that there is no immediate risk of the interruption of the oil supply in the short term."

Andris Piebalgs, energy commissioner, said the EU wanted an 'urgent' explanation to Transneft's decision.

The commission's oil supply group is planning to hold a meeting this week to review its response.

Russia doubled its natural gas price for Belarus to $100 (£51.73) per 1,000 cubic metres on January 1st.

Two days later, Belarus introduced a transit duty fee of $45 (£23.15) per metric ton of Russian oil. When Transneft refused to pay the levy it launched legal action against the firm.


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