Moscow
Russia cut off all oil supplies to Europe this week in a tussle with Belarus over prices. Belarus, a former Soviet republic, paid submarket prices for Russian natural gas until Jan. 1, when Russia doubled the charge and added an export duty on oil. Belarus hit back by demanding a tax on Russian oil bound for Europe that crosses Belarus through the Druzhba, or Friendship, pipeline; Russia has now turned off that tap. Germany and Poland, which depend on Russian oil, said such a tactic was “not acceptable.” But Russian President Vladimir Putin refused to back down, saying that even with the price hike, his country would lose more than $3 billion on its energy trade with Belarus.
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