The European Commission has urged Russia and Belarus to end their gas price dispute, on concern that consumers across Europe could be affected.
Russia's state-owned Gazprom has threatened to cut off gas to Belarus on 1 January unless a 134% price rise is accepted. Russian gas passes through Belarus through a pipeline on its way to Europe, and a shutdown could put supplies at risk.
Energy Commissioner Andris Piebalgs today called for a solution that would safeguard EU supplies. 'I call on the two parties to reach as soon as possible a satisfactory agreement that does not put in question gas transits to the EU,' he said.
He added that the EU's gas co-ordination group, which supervises the security of natural gas supplies, would meet in Brussels to discuss the problem on January 4.
Gazprom wants Belarus, whose relations with the EU have generally been tense, to pay more than double the current price of its gas imports from January 1. Belarus has suggested it will disrupt the transit of Russian gas across Belarus to clients in western Europe unless Gazprom agrees to supply the domestic needs of the country.
However, German Economy Minister Michael Glos, played down fears of a growing crisis. "There is no reason to fear a threat to supply security in Germany thanks to existing storage capacity and the small amount of the supply actually sent via Belarussian gas pipelines," he said.
Ukraine offered today to increase the amount of gas through its pipelines to Europe in the event of disruption in Belarus.
The EU is heavily dependent on Russian energy and while this spat is unlikely to have a heavy impact on the bloc, it does raise new concerns about supply security. Russia supplied 24% of the EU's total gas needs in 2005, according to data from European gas federation Eurogas.
Of that, about 20% transits through Belarus and 80% through Ukraine, meaning that about 5% of the gas supplied to Europe by Russia could be affected.
A similar stand-off this time last year between the Russian gas monopoly and Ukraine, saw supplies there cut on New Year's day but also had knock-on effects for European consumers down the supply line.
The cuts, during an exceptionally cold winter, exposed a lack of any real EU energy policy and since then, energy agreements have been signed with Ukraine, Azerbaijan and Kazakhstan, while a partnership is being finalised with Algeria, which could see gas supplies from there double.
The European Commission plans to unveil its strategic energy review on January 10 aimed at providing a vision for the EU's policies.
