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23.06.2010, 10:24

More gas cuts for Belarus as row continues

Gazprom has decreased its gas supply to Belarus to 40% of the norm as a result of the ongoing financial conflict.

23.06.2010, 10:56 1 comment

Belarus gas dispute moves into third day

Gazprom has again turned down the volume of Russian gas flowing to Belarus, cutting deliveries by 60%, and is planning to re-direct gas supplies to Europe.

22.06.2010, 15:40

Gas transit stopped as debt imbroglio spreads

Belarusian President Aleksandr Lukashenko has ordered a halt to the transit of Russian gas through his country until Gazprom pays of its transit debt.

06.06.2009, 02:15 2 comments

Ukraine pays Russia for gas, avoids cut off

Ukraine’s “Naftogaz” company has paid its bill for Russian natural gas supplied in May. This happened just three days before the deadline set by Gazprom.

02.07.2010, 07:33

Belarusian President Lukashenko – Europe’s last dictator

Belarus has repaid Azerbaijan the money it borrowed to pay its gas debt to Russia.This comes at the end of a gas clash between Minsk and Moscow that saw President Lukashenko order the gas pipeline to Europe shut down.

05.03.2009, 23:03 1 comment

Ukraine pays gas debt after Putin’s warning

Ukraine’s Nagtogaz has paid its debt to Gazprom in full. The bill was for gas supplied in February. Earlier in the day PM Vladimir Putin said if Ukraine failed to compensate by March 7, the supply would be stopped.

25.05.2009, 21:23 1 comment

Russia-Ukraine gas row: heating up again

Another fuel row seems to be brewing between Russia and Ukraine. Ukraine needs about $5 billion dollars to fill its gas reservoirs for next winter – a pressing problem for Kiev with Ukraine in financial crisis.

23.06.2010, 17:49

“Europe’s calm reaction on gas dispute is well justified”

Europe’s reaction to Belarus’ decision to cut off Russian gas supplies was relatively calm this time around, which is well justified, believes Indra Overland from the Norwegian Institute of Foreign Affairs.

26.02.2009, 19:11

Round two of gas row in March?

Gazprom’s top management is concerned that Naftogaz will not be able to pay for the gas supplied in February. The Ukrainian company assures it has the money.

23.12.2008, 11:43

Ukrainian industry makes hay on back of gas debt

Gazprom is not the company that’s most hurt by Ukraine’s failure to cover its debts. The real victims are the competitors of those Ukrainian companies that Russia subsidises by giving them what is, in effect, free gas.

Gas row continues unabated, Lukashenko threatens Russia with cut-off

Published: 25 June, 2010, 14:49
Edited: 06 July, 2010, 00:41

Alexander Lukashenko (AFP Photo / Vasily Fedosenko)

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TAGS: Conflict, Russia, Belarus, Lukashenko, Gas


Belarusian President Aleksandr Lukashenko has called for a cut-off of Russian transit gas via the country’s territory despite payments made on Thursday, and is now threatening to cut off oil transit as well.

“I am warning the government once again: failure by Gazprom to pay for the services over the next 24 hours must lead to the suspension of any services for the Russian Federation, involving the transportation of hydrocarbons – oil and gas,” Lukashenko said at a government meeting on Friday.

“You have two days to agree to this. I said this yesterday to the prime minister and the deputy prime minister,” the president said.

The Russian side does not admit to the debt.

“Under the clauses of the contract, Gazprom owes nothing to Belarus,” commented Gazprom spokesperson Sergey Kupriyanov.

Earlier, Russia reduced its gas supply to Belarus to 40% because of the neighbor’s debt of $192 million. The supplies were fully restored on Thursday after the Belarusian side fully cleared the debt, paying at the price stipulated in the contract.

In its turn, Russian company Gazprom paid off its transit fees owed to Belarus. However, disagreement still continues as Gazprom has paid $228 million, whereas Belarus claims the transit fee debt is $260 million. Gazprom says that Belarusian estimates are calculated according to a higher transit fee, but Belarus itself hasn’t fulfilled the commitments that are required by the contract for this rise.

Political analyst Dmitry Babich says the conflict will gradually be resolved. As for the row, Babich says “Lukashenko did not like the pressure that was applied to him.”

“So he is building a sort of resistance, he wants to show Moscow that he can deal with it the same way it deals with him,” the analyst believes.

Watch the full interview with Dmitry Babich

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25.06.2010, 13:37 5 comments

Stalin’s hometown “destalinized”

Residents of Gori, the Georgian city where Joseph Stalin was born, awoke on Friday morning to discover the centrepiece of their main square, a six-metre bronze statue of the infamous soviet leader, had vanished.

25.06.2010, 16:58

Man on trial for trying to kill Russian church head with mental force

Russian police have passed to court a criminal case against a man who was reportedly trying to kill Patriarch Kirill – the head of the Russian Orthodox Church – with a collective mental attack by a group of followers.

Count Cash June 27, 2010, 01:34
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Ok now we are onto the backdating clause. Basically at what point will the new negotiated price take effect for transit. This is great stuff, it really wraps up all the issues of what you get into, when you have money flows and set off and where people think some negotiations have moved to being contractual obligations, while others not. Don't you think with all the Lawyers these guys have, they could have avoided this. Hope the new paperwork is better!

John June 25, 2010, 22:07
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Looks like Lukashenko is winning.

Count Cash June 25, 2010, 15:42
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This was all about prices and enforcing them. What was happening was that there were debts both ways, and Belarus wanted to decide how they were offset, basically setting its own Gas and transit fees. It decided on the Net debt after its calculation. This also had the additional benefits of cashflow reduction and possible foreign exchange aquisition. In this situation Gazprom had to force actual transactions, representing actual contractual amounts . Exact payment from Belarus against contracted Gas, exact payment to Belarus against contracted transit. These had to be fully reconciled transactions to make it work. The net effect is that Belarus is not happy, because it cannot set the parameters of the deal as it wanted to. Effectively it couldn't vary the contract as it wished. Now the game moves onto Belarus trying to get those variations in the contract by other means, in this case blackmail.