The Associated Press 23 June, 2010

Russia on Wednesday further reduced natural gas supplies to ex-Soviet neighbour Belarus over what it claims is a debt of nearly $200 million U.S.

However, according to Russian authorities the transit of its deliveries to European customers has continued unimpeded.

Supplies to Belarus from Russia's state-controlled natural gas monopoly Gazprom were reduced by 60 per cent as of Wednesday, the company's chief executive Alexei Miller said in televised remarks.

Gazprom reduced supplies by 15 per cent on Monday and by another 15 per cent Tuesday. It warned Belarus it would eventually cut the deliveries by 85 per cent if Belarus refuses to pay off its debt.

Belarus' Energy Ministry has warned in a letter to the European Commission that cuts of more than 15 per cent could lead to transit shortages.

But the transit of Russian gas to European customers has so far continued uninterrupted despite the Belarusian threat, Miller said Wednesday.

Gazprom has insisted that European customers will not be affected by the shut-off as the company can reroute gas supplies through another transit pipeline crossing Ukraine.

About 80 per cent of Russian gas exported to Europe normally goes through Ukraine, while the rest is carried via Belarusian pipelines.

Russia has cut gas supplies to both Ukraine and Belarus several times in recent years due to payment disputes, and many European consumers have suffered amid freezing winter temperatures.
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