The existing contract for oil deliveries from Russia to Belarus expired Dec 31, and now everyone's up in a tizzy about renegotiating the terms. A third of Europe's oil comes from Russia, via Belarus, and the EU is worried about the Kremlin turning off the spigots.
Tensions have been mounting for a while:
- Belarus refused to recognize Abkhazia and South Ossetia as independent states
- Russia offered a $2billion loan to Belarus, then didn't deliver the final $500 million
- In response, Moscow banned Belarussian milk products
- Belarus announced an interest in joining the EU's Eastern Partnership
If Moscow were to succeed in completely taking over the Belarusian energy distribution network, it would not only be in a stronger position to influence Minsk's foreign policy, but the move would also improve Moscow's market power, and hence its political leverage, vis-à-vis Europe.
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