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Hopes fade for early resolution to oil dispute

Oil - The Druzhba pipeline
Oil - The Druzhba pipeline

Hopes of a quick resolution to the oil dispute between Russia and Belarus have faded after Moscow threatened to cut its oil production.

The Russian Economy Minister told a news conference earlier today that talks between Moscow and Minsk had ended without agreement.

He said that talks may resume at a later date, but did not say when.

The EU Commission President deplored the escalation in the row, which has seen supply cut off to several member states.

Jose Manuel Barroso said it was not acceptable for suppliers or transit countries to take such measures without consultation, a view backed by the German Chancellor, Angela Merkel.

Ms Merkel said she would raise the issue with the Russian President, Vladimir Putin, in Moscow later this month.

Hungary, Slovakia, the Czech Republic, Germany and Poland are among the countries whose oil supply has been affected.

Belarus is insisting that Russia pays $45 per tonne for oil transiting through the Druzhba ('Friendship') pipeline across its territory, but Moscow says the fee is illegal.

Both countries accuse each other of provoking the halt in supplies.

Delivery of Russian oil remained suspended after being halted on Sunday night.

A spokesman for Belarus company Gomeltransneft Druzhba would not confirm or deny that Belarus had taken oil as payment, as Moscow has claimed.