January 10, 2007	Wednesday	Zilhaj 19, 1427

MOSCOW, Jan 9: Russian Energy Minister Viktor Khristenko on Tuesday confirmed that Moscow had cut off oil supplies through the Druzhba pipeline to Belarus and European markets.

“Since the morning of Jan 8, Russia has not been supplying oil through the pipeline in the direction of Belarus,” Khristenko told reporters at a news conference in Moscow.

Khristenko said Russia was forced to halt supplies after Belarus began blocking oil transit through its territory on Jan 7, increasing pressure in the pipeline to dangerous levels.

“If the valve is closed to you on the other end of the pipeline, then you have nowhere to ship that oil” without causing a “technical failure” or re-routing the oil in Russia “not knowing where or to whom,” Khristenko said.

The Druzhba (“Friendship”) pipeline, which accounts for a third of Russia's total exports of crude oil, starts in Russia and transits through Belarus on its way to several EU member states further downstream.

The Czech Republic, Germany, Hungary, Poland and Slovakia have all reported cuts in Russian oil supplies this week. The Czech Republic, Hungary and Slovakia are almost wholly dependent on Russian oil imports.

The cut-off is the result of a pricing row between Moscow and Minsk.

Belarus this month imposed a 45-dollar-per-tonne (35-euro-per-tonne) tariff on Russian oil transiting through its territory.

Moscow has dismissed the transit fee as illegal, and Khristenko emphasised that Russia would seek alternative oil export routes to Europe that did not transit through Belarus.--AFP

Confidence destroyed: German Chancellor Angela Merkel said that Moscow's sudden suspension of oil deliveries westwards through the Druzhba pipeline in Belarus destroyed confidence in Russia as an energy supplier.“It is not acceptable when there are no consultations about such moves,” Ms Merkel said when asked about Russia's reliability as an energy partner.

“That repeatedly destroys confidence and you cannot build cooperation based on true mutual trust in this way,” she told reporters in Berlin after talks with European Commission President Jose Manuel Barroso on Germany's six-month EU presidency.Germany has been Russia's closest partner in the European Union.

Barroso urged Russia and Belarus to find a quick solution to their energy dispute.

“It is unacceptable for either supplier or transit countries to take measures that impact on partner countries without consultation,” he said.

Negotiations between Russia and Belarus started in Moscow on Tuesday the day after the Russian oil supply via the Druzhba pipeline was cut, Interfax news agency reported.

About 12.5 per cent of the oil the EU consumes is transited through the pipeline from Russia, which provides half of the 27-nation bloc's oil imports.

Ms Merkel earlier announced plans to travel to Moscow on Jan 21 for talks with Russian President Vladimir Putin about a stalled treaty on political, economic and energy cooperation with the EU.

The German chancellor noted that the EU had a “strategic partnership” with Russia.

“And when we look back on the last decades we see that even during the Cold War Russia has been a stable supplier of energy,” she said.--AFP

The current oil row follows a New Year's dispute over a more than doubling of Russian gas prices for Belarus, also prompting fears of a knock-on effect for western Europe.

A spokesman said Germany had about 130 days of oil reserves and Poland had 70 days worth.

Barroso said that the Oil Supply Group, a team of European experts, would meet later this week to consider any measures which may be required.

The European Commission will on Wednesday outline plans to reduce dependence on foreign energy while increasing competition in the market.—AFP