RUSSIA: Russian President Vladimir Putin meets Belarussian counterpart Alexander Lukashenko for talks in Moscow

Russian President Vladimir Putin met Belarussian counterpart Alexander Lukashenko in Moscow on Friday (December 15) for talks which were expected to focus on the sensitive issue of energy supplies. Belarus said on Thursday (December 14) its key ally Russia had violated an agreement on unifying their states by saying it would impose full duties on oil exports to Belarus. Russia announced earlier this week it would end the era of cheap oil for Belarus from 2007, the latest sign of a growing rift between Moscow and Minsk. Lukashenko is isolated by the West, which accuses him of abusing human rights and media freedoms. He has relied heavily on Russia for political and economic support, but relations have soured. Moscow and Minsk are already arguing over gas prices. Russian gas export monopoly Gazprom has threatened to cut supplies to Belarus from January (2007) unless it agrees to cede control of its pipelines. The imposition of oil duties was a fresh blow. Russian crude oil exports to Belarus and Kazakhstan have been exempt from export duties. Russia has not said it will impose duties on Kazakhstan, itself a rising oil producer. But Putin has said Moscow was losing billions of dollars every year by allowing its firms to send oil to refineries in Belarus, which were then re-exporting refined products to European markets. The Belarussian economy is heavily dependent on cheap gas and other subsidies from Russia and the impact of Moscow's latest stance could be considerable.

ITN Source | December 18, 2006

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