Russia reduced its gas supplies to Belarus by 30 percent. As Gazprom's press service reported

Beginning 10:00 a.m. Moscow time today, Russia reduced its gas supplies to Belarus by 30 percent. As Gazprom's press service reported, the holding recommends Belarus to urgently sign and submit to the company a prolonged contracts with independent gas suppliers, i.e. Itera and Transnafta. Otherwise, gas supplies will be stopped altogether, Gazprom's release says. Itera and Transnafta informed Gazprom today that the gas supplies agreed on with the Belarusian gas transportation company Beltransgaz for January and February 2004, had been used. Belarus has not signed new contracts as yet. As Gazprom Deputy CEO Alexander Ryazanov stated, talks on gas supplies to Belarus and its transit via its territory "are stuck". According to him, Belarus keeps insisting on a non-market price of supplies that is below the prime cost. He stressed that the Belarusian government also turned down Russia's initiative to release a credit to Belarus for compensating for the difference in prices. Gazprom also pointed out that Beltransgaz violated an agreement on restructuring its debt to Gazprom signed in December 2003. But to date, Belarus owes $6bn in arrears, the release says. Independent gas suppliers are in a similar position. They have also faced the problem of non-payments. Russian gas is transited via Belarus to the Kalinigrad region, the Baltic countries, Poland, and Germany. "Gazprom is ready to sign a transit agreement but Belarus is not. It is trying to use the fact that there is no agreement at the negotiations," Ryazanov pointed out.