Putin Seeks Oil Output Cut From Cabinet

A part of the pipeline "Druzhba" located in the Belarusian town of Mozyr, some 300 km (188 miles) southeast of Minsk, Tuesday, Jan. 9, 2007. Talks between Russia and Belarus to resolve a trade row that has led Moscow to halt oil supplies to several EU nations via Belarus have not been able to start, Belarusian negotiators said Tuesday, calling for unconditional negotiations. (AP Photo/Sergei Grits) (Sergei Grits - AP)

MOSCOW -- Russia dug in its heels Tuesday over a two-day-old pipeline transit dispute with Belarus that has interrupted Russian oil shipments to Germany and much of Eastern Europe, amid mounting European Union criticism of the disruption.

The second Russian-related energy stoppage to affect the EU in 12 months has intensified European concerns about reliance on Russian oil and gas.

But President Vladimir Putin's calculation appears to be that Belarus' authoritarian leader Alexander Lukashenko will have to give in when his country runs out oil reserves, analysts said.

Putin on Tuesday ordered his Cabinet to consider a possible reduction in oil output _ an indication the standoff could drag on. Russia has a limited capacity for refining oil and would have to cut crude output if its exports decrease suddenly.

Once close allies, the two former Soviet nations' relations have grown increasingly tense amid impatience in Moscow at subsidizing the economy of Belarus' isolated regime through cheap energy.

The ongoing spat was sparked by a Russian decision late last year to impose duties on oil exports to Belarus. Last week, Minsk said it would slap duties on Russian oil pumped across Belarus to Europe as Lukashenko lashed out at what he called the Kremlin's "shameless" conduct.

On Monday, Russia stopped pumping oil to Europe via the Druzhba, or Friendship, pipeline that crosses Belarus, accusing its neighbor of siphoning off oil.

A delegation led by Belarusian Vice-Premier Andrei Kobyakov flew to Moscow on Tuesday to find a solution to the stoppage, which has affected Ukraine, Germany, Poland, Hungary, the Czech Republic and Slovakia. But Belarusian Deputy Foreign Ministry Andrei Yevdochenko accused Russia of making unreasonable demands.

"Everything should be placed on the negotiation table without any preliminary conditions or preliminary demands. We are ready for dialogue," Yevdochenko told a news conference at the Belarusian Embassy.

Russian officials say talks could resume only if Belarus annuls the oil transit fee.

"These are our unconditional demands, and we will not enter into talks until these conditions are satisfied," Trade and Economics Minister German Gref told reporters after meeting with Kobyakov.

Trade and Industry Minister Viktor Khristenko said state-controlled pipeline operator OAO Transneft had filed a lawsuit against its Belarusian partner.