Russia warned Europe yesterday about cuts in gas supplies after the Kremlin told Gazprom, its state-owned energy giant, to start turning off the tap to Belarus over unpaid debts.
Russia cut supplies to Belarus by 15 per cent and threatened to reduce them by 85 per cent unless it settled an unpaid bill of almost $200 million.
The latest gas conflict erupted days after President Medvedev told foreign business leaders in St Petersburg that Russia wanted to present a friendlier face to the world to attract investment.
He told Alexei Miller, the Gazprom chief, to reduce supplies at a televised meeting in the Kremlin that made plain the deteriorating relationship with President Lukashenko of Belarus, who is usually regarded as Russia’s closest ally. Mr Miller said Belarus had under-paid its contract for five months and had sought a barter deal.
Mr Medvedev mocked the idea and insisted on cash, saying: “Gazprom cannot accept . . . neither pies, nor butter, nor cheese, nor pancakes, nor other means of payment.”
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Russia said Belarus’s debt would rise to $270 million if not paid by Friday. Europe imports about 10 per cent of its gas needs through pipelines that cross Belarus from Russia.