Belarus seeks energy cooperation with Ukraine

MINSK, Nov 24 (Reuters) Belarussian President Alexander Lukashenko, at odds with Russia over proposed gas price rises, urged neighbouring Ukraine to boost cooperation to counter the effects of Moscow's control of energy in the region.

Ukraine and Belarus together hold nearly all the pipelines that take Russian gas to western European customers. Both are locked in talks with Russian gas giant Gazprom over its proposals for steep price increases.

Lukashenko, who regrets the end of Soviet rule and is accused in the West of human rights violations, is an unlikely partner for pro-Western Ukrainian president Viktor Yushchenko.

But he suggested pursuing energy cooperation at next week's summit in Belarus of the largely moribund Commonwealth of Independent States grouping ex-Soviet republics.

''We could coordinate policies. We have more trump cards,'' he told Ukrainian journalists in comments broadcast on radio yesterday.

''We have colossal possibilities and instruments. Belarus and Ukraine need only come to an agreement and the configuration of political and economic relationships in the region will change.'' Lukashenko said the two states should counter attempts ''to drive us apart. When there is pressure put on one country at one point and then on another country, the effect is divide and conquer. We must be united in this respect.'' He said coordination could focus on westward transit of gas.

Lukashenko last month proposed that Azerbaijan, an oil-rich ex-Soviet state in the Caucasus mountains, use Belarus as a transit route to refineries in Lithuania and Poland.

And Ukraine said it was examining proposals to hold in its storage areas gas intended for Belarussian customers.

Russia and Ukraine have repeatedly quarrelled over gas prices, with a row culminating in a New Year cutoff of supplies to customers both in Ukraine and in western Europe.

The two sides later agreed to raise the price to 95 dollars per 1,000 cubic metres from 50 dollars and Ukraine's government says it has agreed on 130 dollars for next year. Gazprom wants to raise prices in Belarus to 200 dollars from 47 dollars, but Lukashenko says he will severe all ties if that increase goes ahead.

Both Ukraine and Belarus have rejected any notion of cutting prices in return for giving up control of the pipelines.

Lukashenko said his long-held plan for a political merger with Russia, now viewed with scepticism in the Kremlin, was nonsense if gas prices were higher in Belarus than in Russia.

''The main thing is that gas prices should be identical for Russia and Belarus. If there are different conditions, what sort of union can we speak of here?'' he said.

He restated his contention that Belarus could respond by charging Russia for cargo transit and the use of military bases.

''The issue is not about price, but relations,'' he said.

''Russia says Russian business must derive some benefit. Well, we will have to look for benefits of our own. One hundred million tonnes of cargo through our territory could do just that.'' Reuters SBA VP0720