Belarus pays gas debt in full :: Charter'97 :: News

Russia`s state-controlled gas monopoly Gazprom said Wednesday it had received all of an outstanding US$460 million (€334 million) gas bill from Belarus. The announcement allayed fears that the latest energy dispute between Russia and its former Soviet neighbor could lead to supply interruptions for Europe.

"Gazprom confirms that Beltransgaz has made the last payment for gas delivered in the first half of the year," the company`s press department said in a statement, referring to the Belarusian pipeline operator.

Gazprom, the world`s biggest natural gas producer, threatened last week to cut nearly half of the Belarus gas supply if the bill was not paid.

That fueled fears that Belarus could siphon gas from pipelines carrying one-fifth of Russia`s gas exports to Europe, and highlighted once again the vulnerability of the web of pipes that Russia uses for export to Western markets.

The standoff began with a supply contract signed in 2006 that obliged Belarus to pay US$100 (€73) per 1,000 cubic meters of gas, more than double the previous rate of US$46 (€33).

The agreement allowed Minsk to pay US$55 (€40) per 1,000 cubic meters for the first half of the year — giving its economy time to adjust — but required payment of the balance of nearly US$460 million (€334 million) by July 23.

In a fight over Ukraine`s supply contract, Gazprom halted direct shipments there in early January 2006. Deliveries to the EU dropped as Ukraine skimmed gas from a transit pipeline. Gazprom supplies a quarter of the gas used by Europe, and the incident drove home Europe`s dependence on Russia for energy.

A year later, a dispute in January over oil duties with Belarus caused crude supplies in some European countries to fall.