Russia cuts off oil destined for Europe

MINSK, Belarus, Jan. 4 (UPI) -- Russia cut off oil to Belarus, much of it destined for the rest of Europe, as talks broke down in a dispute over tariffs, officials say.

Oil supplies to Europe could be disrupted this winter, as they were in 2007, when Russia cut off the flow to neighboring Belarus after the two countries failed to reach an agreement on prices, The Guardian reported Sunday.

European countries are concerned about increasing dependence on Russian energy supplies and the effect of possible shortages, the British newspaper said.

Last winter, Ukraine had its gas supplies cut off by Russia. The halt in shipments to Europe sent wholesale gas prices soaring and millions of households in Eastern Europe endured days without heat, The Guardian said.

Belarus refines and ships most of the oil it imports from Russia to Europe, and with a week's worth of oil stockpiled, the immediate effect of the dispute is unknown.

In 2009 Belarus enjoyed significant discounts on imported Russian oil and wants a similar deal this year. Russia says it is willing to eliminate duties on oil for domestic consumption in Belarus, but insists on a duty on oil headed to Europe, news agency RIA Novosti said.