FACTBOX: Russian energy transit states

Mon Mar 3, 2008 3:38am EST
 
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(Reuters) - Russia's relations with countries through which it ships gas, power and coal to Europe have been characterized by frequent disputes.

Moscow has branded as parasites the energy transit states that have benefited from shipping fees and cheap Russian energy and said Russia should stop subsidizing them.

Analysts have predicted relations would remain tense as Russia pursues an assertive foreign policy, but this is balanced by concern it could give the impression to western Europe it cannot be relied upon for secure supplies.

The following outlines the main transit states.

UKRAINE

Around 80 percent of Russia's gas exports to Europe pass through Ukraine.

Ukraine has long haggled over how much it pays Russia for gas, but the row came to world attention in January 2006, when it led Gazprom to halt supplies to Ukraine. As a result, exports to Europe, which relies on Russia for 25 percent of its gas, were also affected.

The dispute was solved by Ukraine agreeing to pay roughly double for its gas.

Russia has made clear its strategy of trying to buy into infrastructure in transit states, but Ukraine has balked at the prospect.

Its parliament last year passed a law to ban the privatization, sale or lease of the country's gas pipelines.

For its part, Russia has proposed building the Nord Stream pipeline to Europe, bypassing Ukraine.

BELARUS

Around 20 percent of Russia's gas export to Europe flows through Belarus.

In addition the Druzhba, or Friendship, pipeline -- which passes through Ukraine and Belarus -- supplies Europe with around one tenth of its oil.

During a pricing dispute with Russia in January 2007, oil shipments through Belarus were halted for three days.

Belarus has also clashed with Moscow over the price it pays for its gas.  Continued...

 

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