When two fight, the third... doesn't get his oil

[Winner]

Russia oil row hits Europe supply

Russia has cut oil supplies to Poland, Germany and Ukraine amid a trade row with its neighbour Belarus.

The Russian state pipeline operator, Transneft, said it cut supplies on the Druzhba pipeline to prevent Belarus illegally siphoning off oil.

The European Commission said the cuts posed no immediate risk to European supplies but it was seeking an urgent explanation from Belarus and Russia.

Belarus has been in dispute with Russia over the price of Russian oil and gas.

Minsk says Russia has not been paying a transit tax for moving oil through Belarus, imposed after Russia doubled the price it charges Belarus for gas supplies.

Exports were halted after Belarus began legal action against Russia for failure to pay the new oil shipment tax.

Transneft later said it had been forced to cut off supplies through the Druzhba pipeline after Belarus began siphoning off oil as payment in kind for the duties.

The Russian firm has so far refused to pay the oil export taxes as it claims the charges are illegal.

Separately, Azerbaijan has suspended oil exports to Russia following a pricing dispute with Russian state-backed oil giant Gazprom.


Supply issues

Neither Germany nor Poland is in any immediate danger of experiencing oil shortages, as both maintain substantial reserves.

But BBC economics correspondent Andrew Walker says the suspension is an uncomfortable reminder to Europe of the large and growing role that Russia has in meeting its energy needs.

Poland's Deputy Economy Minister, Piotr Nalmski, said his country had enough oil reserves for 80 days, but he attacked the decision to halt exports.

"This shows us once again that arguments among various countries of the former Soviet Union, between suppliers and transit countries, mean that these deliveries are unreliable," he told the BBC.

Last year deliveries of Russian natural gas to much of Western Europe were disrupted during a dispute over pricing between Russia and Ukraine.

The European Union is set to discuss energy supply issues as part of a meeting on climate change and energy policy scheduled for Wednesday.


European concern

The European Commission said it was investigating whether the Russian move would have an impact on another branch of the pipeline, which runs to Slovakia and south-east Europe.

"I have also contacted our Russian and Belarusian authorities calling on them to provide an urgent and detailed explanation of the causes of this disruption," said European Energy Commissioner Andris Piebalgs.

Commission officials plan to look at whether European Union members will have to draw on strategic stockpiles to ensure their supplies, he added.

German Economy Minister Michael Glos said he viewed the pipeline closure with concern and called on Russia and Belarus to meet their energy transit and delivery responsibilities "as soon as possible".

Officials in Minsk have declined to comment.


Row intensifies

The decision to shut down the Druzhba pipeline is the latest twist in an energy row between Belarus and Moscow that began when Russian energy giant Gazprom forced Belarus to accept a huge increase in the price of Russian gas.

Last week Belarus said it would charge Russia $45 (£23) per tonne of oil that passed through its country.

News of the disruption to supplies was a key factor helping to drive oil prices through the $57-a-barrel barrier after falling to around the $55 level last week.

US light sweet crude rose 89 cents to $57.20 in New York trade, while in the UK Brent crude stood at $56.71 - up $1.08.

News that Saudi Arabia, the world's largest oil producer, planned to cut output by 158,000 barrels a day also helped to drive crude prices higher.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6240473.stm

So, Belarus and Russia are fighting over oil prices, so Europe doesn't get its oil. Nice.

I hope they'll resolve this soon.

 

[AL_DA_GREAT]

Don't worry. The US can send oil from Iraq. They will eventualy solve their issue. Putin is desperatly trying to build up Russia to its former strengh, as the Soviets did with missiles.

 

[Winner]

Don't worry. The US can send oil from Iraq. They will eventualy solve their issue. Putin is desperatly trying to build up Russia to its former strengh, as the Soviets did with missiles.

I think Belarus is pretty screwed. Russia was its only ally, so what will Lukashenko do now? Rely on Chávez or Castro?

Ukraine, in similar row year or two ago, had a backing of the EU, but Belarus is alone.

So they started blackmailing us all. Nice.

 

[Abaddon]

Soviet Russia FTW!

 

[Tee Kay]

Lukachenko is like Kim Jong Il: isolationist, arrogant, totalitarian but crafty. A very dangerous and unpredictable neighbour, especially for countries in close contact ie Russia.

 

[Abaddon]

Putin is like Kim Jong Il: isolationist, arrogant, totalitarian but crafty. A very dangerous and unpredictable neighbour, especially for countries in close contact ie Belarus.

fixerfied...

 

[Winner]

Lukachenko is like Kim Jong Il: isolationist, arrogant, totalitarian but crafty. A very dangerous and unpredictable neighbour, especially for countries in close contact ie Russia.

Well, Russia is not much better.

But if it helps to undermine Lukashenko's regime, it is good.

 

[Volum]

More money for uss then... We're your friendly gas and oil neighbour who always delivers

 

[Winner]

More money for uss then... We're your friendly gas and oil neighbour who always delivers

Not so loud, Americans could hear that

 

[Volum]

We also have a high tech weapons lab that develops WMD hidden in the mountains!

Besides, Bush is to scared of the Norwegian milltary!

 

[ArneHD]

Not so loud, Americans could hear that

Don't worry, the french and russians are only looking for an excuse to nuke the states any way.

 

[Panda]

I just have to say this to all you nuclear power-hating hippies out there:

I told you so!!!

Merci for the inspiration, Jacques Chirac.

 

[Tank_Guy#3]

I think Belarus is pretty screwed. Russia was its only ally, so what will Lukashenko do now? Rely on Chávez or Castro?

Ukraine, in similar row year or two ago, had a backing of the EU, but Belarus is alone.

So they started blackmailing us all. Nice.

We (US) can sell you oil. I'm sure there would also be political conditions, but I think we can manage it.

 

[Masquerouge]

I have to say siphoning an oil pipe to get your payment in kind is a really nice way of playing realpolitik.

 

[amadeus]

Wasn't someone planning on building a trans-continental oil pipeline that would isolate Belarus?

 

[Winner]

Wasn't someone planning on building a trans-continental oil pipeline that would isolate Belarus?

Germany plans to build gas pipeline in the Baltic sea.

 

[Winner]

We (US) can sell you oil. I'm sure there would also be political conditions, but I think we can manage it.

It is not that bad, I think the crisis will be resolved before our reserves run dry (my country has reserves for 100 days as well as other European countries).

 

[Riffraff]

Germany plans to build gas pipeline in the Baltic sea.

yes and even though it has been heavily critized by the countries who wont be receiving comission fees anymore, its a good idea.

 

[StarWorms]

More money for uss then... We're your friendly gas and oil neighbour who always delivers

Yay for the new pipeline to Norway

 

[Pontiuth Pilate]

In Soviet Russia, blackmail Putins YOU!!