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U.S Company expects for next break up of Russian gas supplies to Europe

Oil&Gas Materials 31 July 2009 10:34 (UTC +04:00)
U.S Company expects for next break up of Russian gas supplies to Europe

Azerbaijan, Baku, July 30 / Trend A. Badalova /

U.S analyst company, ESAI (Energy Security Analysis), expects for breaking up Russian gas supplies to Europe via Ukraine and Belorussia this winter.

According to report of the company, Ukraine and Belorussia are important transit countries for oil and gas supplies to Europe. Ukraine and Belorussia's difficulties increase tension in gas relations and can suspend Russian gas supplies both one of these countries and both of them.  

According to ESAI, current disputes between countries are more intensified than previous one. 

Tension between Russian and Belorussia increased after President Alexander Lukashenko said that disputable issues often occur in relations between both countries. President met with heads of all foreign diplomatic missions of Belorussia to inform them about new foreign political priorities first within last three years. "Disputes concerned political and economic issues, including power engineering," ESAI report said.       

U.S Company does not rule out possible break up of relations between Russia and Belorussia. It can break up oil and gas supplies to Europe.

According to report, there is precedent to break up oil supplies. Belorussia fixed tariff for oil transit in 2007. It was reason for Russia to cease oil supplies for a while.  

Usually Belorussia and Russia solve existing disputes reminding rest world about special relations. But current tension can forebode unprecedented break of relations between two countries, ESAI report said.  

Regarding Ukraine, ESAI said that Ukraine's failure to pay for gas reduces its chases to combat against crisis. At present, Gazprom demands complete payment during a week after each month.

"Ukraine is obliged to increase internal price for gas. It will promote to pay for Russian gas. Increase of price for gas will not be easy during recession. Ukrainian leadership is unlikely to avoid crisis successfully," report said.

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