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Gazprom Warns Europe Of Possible Supply Disruptions

December 27, 2006

Aleksei Miller (file photo) (ITAR-TASS)

December 27, 2006 -- The head of Russia's state-run gas monopoly Gazprom, Aleksei Miller, today warned European customers that they could face gas-delivery problems because of the company's pricing dispute with Belarus.


Gazprom has threatened to suspend gas supplies to Belarus on January 1 if Minsk refuses to pay the new rate of $105 per 1,000 cubic meters of gas -- more than twice what it currently pays.

MORE: Coverage in Russian from RFE/RL's Russian Service.

The company says Belarus could negotiate a reduction if it hands over a 50-percent share of its state-controlled gas-transport network.


Belarus has responded by saying it will not allow Gazprom to send gas through its pipelines unless a deal on 2007 gas prices is reached by the New Year. It has also threatened to siphon off Russian gas bound to Europe in the event of a gas shutoff.


Miller today accused Belarus of adopting a "destructive position." He said that Gazprom was not "Santa Claus" and that Belarus should not expect any gifts on New Year's Eve.


The dispute comes exactly one year after a similar row with Ukraine briefly disrupted Russian gas deliveries to several European countries.


(compiled from agency reports)

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How Much Do The Neighbors Pay?

SETTING THE RATES: With Gazprom negotiating new contracts, many states will be paying more for Russian natural gas in 2007.

  • Belarus, following tense negotiations with Gazprom, will pay $100 per 1,000 cubic meters in -- up from $47 in 2006. 
  • Ukraine, which depends on Russia to supply it with about 77 percent of its gas, will pay $130 per 1,000 cubic meters of a Turkmen-Russian gas mix.
  • Moldova, which depends on Russia for 100 percent of its gas, will pay $170 per 1,000 cubic meters, with the price rising to European-level market price by 2011.
  • Georgia has agreed to pay Gazprom $235 per 1,000 cubic meters of gas.



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