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Dialogue for security. The official site of non-governmental  association ]]> Foreign Policy and Security Research center ]]> (Minsk, Belarus)

Belarus promises to pay electricity bill as Russian cutoff looms

Minsk/Moscow - Belarusian officials on Wednesday said an outstanding bill to Moscow for electricity would be paid 'immediately,' as a deadline loomed for Russia to cut off all power supplies to the former Soviet republic.

'We will pay,' said Belarusian Economy Minister Nikolai Snopkov at a news conference in Minsk. 'But whether or not we import electricity in the future will depend on the price.'

Officials at Russia's state electricity producer, Inter RAO UES, said on Tuesday they intended to cut Russian power to Belarus shortly after midnight Thursday because Belarus owes 43 million dollars for electricity used from March through May.

Belarus' government was 'working through procedures' to permit its national bank to purchase sufficient Russian roubles to pay the debt, the Belapan news agency reported.

Snopkov said that Belarusian electricity producers had sufficient excess capacity to cover a loss of Russian electricity if Inter cuts power on Thursday.

Belarus is highly dependent on Russia for oil and gas deliveries, but it obtains only some 12 to 15 per cent of its electricity from Inter, he said.

Belarus' economy has deteriorated during 2011 because of rising Russian energy costs and sluggish international demand for Belarusian goods.

Belarusian President Aleksander Lukashenko in March allowed the national currency to float freely against international currencies, causing an inflationary spike pushed higher by rising energy prices.

Lukashenko has said Russia is using higher energy prices to destabilise Belarus and possibly to force him from power.

Russia stopped providing Belarus with energy at subsidised prices in 2009. Kremlin officials have said they support a stable and independent Belarus, but Minsk must pay market prices for energy.

External source of this news: http://www.monstersandcritics.com/news/business/news/article_1648276.php
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