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Lukashenko: Belarus' gas bill to Russia "will be paid soon"
Published in Saudi Press Agency on 02 - 08 - 2007

President Aleksander Lukashenko, Belarus'
authoritarian leader, said his country will pay Russia a 460-million-
dollar bill for natural gas deliveries "in the coming days," the
Interfax news agency reported Thursday, according to dpa.
Officials from the Russian monopolist natural gas firm Gazprom on
Tuesday accused Lukashenko's government of paying only 45 per cent of
contracted fees for natural gas deliveries during the first half of
2007, and threatened to cut future volumes delivered to Belarus in
half if Minsk did not cough up the cash.
"Today I gave the command to take the money from the (cash)
reserves (of the Belarusian government) and to pay the 460 million
dollars," Lukashenko said.
The payment if made would likely head off a feared natural gas
price war between Minsk and the Kremlin threatening Europe with price
spikes, as Europe receives some 25 per cent of its natural gas from
Russia via Belarusian pipelines.
Gazprom would receive the money "within a month," Lukashenko
promised.
A delegation of Belarusian officials led by Vladimir Maiorov,
director of the Belarusian national natural gas transportation
company Beltransgaz, flew to Moscow Thursday afternoon.
The departure of a high-level delegation from Minsk to the Kremlin
has over the years become a reliable indicator that the Belarusian
leader intends to negotiate with his giant northern neighbour, rather
than push a disagreement with Moscow over energy to an outright
confrontation.
Lukashenko nonetheless was outspoken in his criticism of Russian
President Vladimir Putin who, Lukashenko claimed, stood behind
Gazprom's long-term object of gaining full control over Beltransgaz
and other key elements of Belarus' energy infrastructure.
"They (the Russians) have a simple plan: privatize Belarus in its
entirety, take everything over," Lukashenko charged. "If we at one
time were able to make agreements with (former Russian President
Boris) Yeltsin, the present Russian government has no other priority
but its own interests ... and to stuff its cheeks."
The payment once made would practically empty Belarus government
cash reserves, but other nations friendly to Belarus had already
offered the former Soviet republic credit to cover the gap,
Lukashenko claimed.
"Our good friends, in part (Venezuelan President) Hugo Chavez are
prepared to give us credit on good terms," he said. "And Western
banks also are ready to offer us resources."
Belarus at the same time rejected a Russian government offer to
cover the debt with a credit at an 8.5 annual rate, Lukashenko said,
"because those terms are unacceptable for Belarus." He did not
specify by what rate Belarus would borrow money from Venezuela.
Chavez has been intensifying diplomacy and trade with Belarus in
an effort to bypass efforts by the United States to isolate the
Venezuelan economy, in retaliation for his anti-US rhetoric.
Lukashenko's success in finding foreign credit averted, at least
temporarily, a long-term Kremlin policy of squeezing Belarus with gas
price hikes and supply cut off ultimata, in order to gain control of
natural gas pipelines owned by the Belarusian governments.
A similar dispute between the Russian government and Minsk at the
beginning of 2007 over oil pricing reduced Russian oil deliveries to
Europe for more than a week, spiking the price of the fuel across
East Europe and even as far away as Italy.
European Union spokesmen earlier this week called on Belarus and
the Kremlin to resolve the present dispute "peacefully ... and as
soon as possible."


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