Gazprom resumes full gas supplies to Belarus

Russia's state-owned natural gas giant Gazprom today resumed supplies in full to neighbouring Belarus as Gazprom's European clients started to feel the heat with Minsk starting to siphon off fuel meant for the West.

Gazprom CEO Alexei Miller said yesterday that Belarus had settled gas bills of $200 million accrued since the beginning of the year and gas supplies had been resumed in full at 10:00 Moscow time (11.30 IST).

This is the second instance of Moscow's gas row with the former Soviet republic through which transit pipelines carry gas to the West. Gazprom cut gas supplies to Belarus by 15 per cent on Monday, further cutting supplies 30 per cent on Tuesday and 60 per cent on Wednesday.

The latest row was sparked by Minsk's refusal to pay the Russian gas price of $169 per 1,000 cubic meters for the first quarter of the year and $185 for the second quarter. Belarus has been paying only $150 since 1 January, according to Gazprom spokesman Sergei Kupriyanov, who told reporters on Monday that Gazprom would start cutting back supplies.

Earlier, in 2008 and 2009, Moscow had been forced to take similar action against Ukraine for non-payment of bills. The move affected many member states of the EU in severe winter.

On Tuesday, Alexander Lukashenka, president of Belarus, said Minsk would suspend gas transit to Europe, a move that would result in potentially curbing 6.25 per cent of gas consumption by the EU.