Financial Times FT.com

Gas dispute threatens Belarus, Georgia

By Neil Buckley and Arkady Ostrovsky in Moscow

Published: December 13 2006 22:07 | Last updated: December 13 2006 22:07

Russia is preparing to cut off natural gas supplies to neighbouring Belarus and Georgia unless the two former Soviet republics agree by the year-end to pay much higher prices in 2007.

Coming a year after Gazprom, the Russian gas giant, briefly cut gas to Ukraine in a similar pricing dispute, such a move could provoke further international criticism that Moscow is using energy as a political tool. It might also intensify pressure on Russia to ratify the European Energy Charter treaty, which would require such disagreements to be resolved through arbitration.

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