Tuesday, January 09, 2007

Russia oil row hits Europe supply:


"Russia has cut oil supplies to Poland, Germany and Ukraine amid a trade row with its neighbour Belarus.
The Russian state pipeline operator, Transneft, said it cut supplies on the Druzhba pipeline to prevent Belarus illegally siphoning off oil.
The European Commission said the cuts posed no immediate risk to European supplies but it was seeking an urgent explanation from Belarus and Russia.
Belarus has been in dispute with Russia over the price of Russian oil and gas.
Minsk says Russia has not been paying a transit tax for moving oil through Belarus, imposed after Russia doubled the price it charges Belarus for gas supplies.
Exports were halted after Belarus began legal action against Russia for failure to pay the new oil shipment tax.
Transneft later said it had been forced to cut off supplies through the Druzhba pipeline after Belarus began siphoning off oil as payment in kind for the duties.
The Russian firm has so far refused to pay the oil export taxes as it claims the charges are illegal.
Separately, Azerbaijan has suspended oil exports to Russia following a pricing dispute with Russian state-backed oil giant Gazprom.
Supply issues
Neither Germany nor Poland is in any immediate danger of experiencing oil shortages, as both maintain substantial reserves.
But BBC economics correspondent Andrew Walker says the suspension is an uncomfortable reminder to Europe of the large and growing role that Russia has in meeting its energy needs.

Transneft said it had been forced to cut of supplies through Belarus
Poland's Deputy Economy Minister, Piotr Nalmski, said his country had enough oil reserves for 80 days, but he attacked the decision to halt exports.
'This shows us once again that arguments among various countries of the former Sovie"

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