Page added on December 29, 2006
LONDON
Belarus has rejected the demands. Moscow warned Poland, Germany and Lithuania on Wednesday to expect shortages if the dispute continues. It also warned Belarus not to siphon gas from the Yamal-Europe pipeline.
Gazprom, the world’s biggest gas producer, provides 25% of the natural gas consumed by Europe.
The price dispute shows how Russia is tightening its grip on energy production and distribution to squeeze higher prices from its neighbors. Analysts say it also shows how Russia uses its energy muscle to achieve political goals and deflect criticism of its policies.
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