Russia set to cut Gas supply to Belarus

Russia: Russia will reduce up to 85 percent its gas supply to Belarus if it fails to meet its payment for fuel received this year, insisted the CEO of Gazprom Alexander Miller Sunday.

Miller said the five-day deadline set by Russian President Dmitri Medvedev remains and , Gazprom could tap off the pipeline that carries fuel to the neighbouring country. However, the Russian executive considered that Minsk's proposal of paying part of the US $200 million debt with raw material and equipments speaks of his acknowledgement of the debt.

Moscow appeals to the existing agreement for the price to rise to US $200 per 1000 cubic meters this year, while Minsk kept payments within the existing rates in 2009 of about US $150 per 1000 cubic meters.

The last minute negotiations conducted Saturday in MOscow were unsuccessful.

"We did not reach any agreement", Miller confessed when leaving the negotiations with the leadership of the Belarusian company Beltransgaz.

Local media believe the crisis has little development.

Prensa Latina