Belarus: we'll cut Russian oil, gas supplies to EU

(AP) MINSK, Belarus — Belarus issued a new threat Friday to halt Russia's oil and gas deliveries to Europe unless its pays a disputed debt, but Russian leaders ignored the warning and said they consider the energy dispute with the ex-Soviet neighbor closed.

Later Friday, Belarusian officials told President Alexander Lukashenko that officials from Russian state-controlled gas monopoly Gazprom were arriving Monday for talks, and that a deal could be signed Wednesday. The statement indicated Belarus may tacitly be backing off.

Gazprom on Thursday resumed supplies to Europe via Belarus, following three days of partial cutoffs after Belarus paid down its debt for gas supplies. Russia in its turn made transit fee payments to Belarus.

The dispute, which briefly caused a 40 percent drop in Russian gas supplies to EU-member Lithuania, added to the EU's concerns about Russia's reliability as a top energy supplier. A similar row with Ukraine last year cut off heating to millions in the middle of winter.

Belarus said it paid off its gas debt calculated at an increased rate sought by Moscow, and raised the transit costs accordingly. Russia, meanwhile, has paid for transit under the old rate, leaving the outstanding amount of $32 million, Belarus said.

Belarus warned it would cut the Russian gas transit supplies to Europe on Thursday if Russia doesn't pay the money, but it didn't deliver on that threat. On Friday, Belarusian President Alexander Lukashenko gave Russia until Saturday to pay the alleged debt or face the shutdown of all its oil and gas shipments to Europe via Belarus.

Gazprom has insisted it owes nothing, having paid the fee stipulated in the contract. The company said it could pay a higher transit fee in the future if Belarus allows it to cut a higher income on sales of gas at its domestic marker.

Gazprom's chief executive, Alexei Miller, said Friday it expects to sign a corresponding supplement to the contract with Belarus in the nearest time. He wouldn't comment on Lukashenko's threats, saying only that Russia considers the gas dispute closed.

Russian President Dmitry Medvedev said in a televised hookup from Canada, where he is attending a summit of global leaders, that he hopes that Belarusian officials "cool down" and fulfill their obligations under the contract with Gazprom.

Russia is Belarus' main ally and sponsor, but relations between the two former Soviet countries have worsened over financial arguments. Belarus has insisted that Russia should provide cheaper oil and gas as part of the customs union deal that is to come into force next month, but Russia has refused.