EU condemns closure of Russian pipeline

BERLIN, Jan 9 (Reuters) The European Union sharply criticised Russia today for closing a pipeline supplying oil to Europe in a price dispute with Belarus and said the move hurt Moscow's reputation as a reliable energy provider.

The European Commission and EU president Germany said it was unacceptable for Russia and Belarus to act without consultation.

Russia has stopped crude exports through the Druzhba pipeline, halting supplies to Poland, Germany and several central European countries. Moscow said yesterday it was forced to act because Belarus was illegally siphoning off oil.

''While there is no immediate risk to supply, it is not acceptable for suppliers or transit countries to take measures without consultation. Of course this is a matter for concern,'' Commission President Jose Manuel Barroso said in Berlin.

Barroso was speaking at a news conference with German Chancellor Angela Merkel, who said she agreed and branded the cut-off without prior notice ''unacceptable''.

''That hurts trust and it makes it difficult to build a cooperative relationship based on trust,'' Merkel said of the pipeline closure.

Commission energy spokesman Ferran Tarradellas Espuny told reporters in Brussels that the pipeline closure and a similar cut in gas supplies to Europe a year ago in a price dispute with Ukraine, ''are not going to do good for Russia's reputation as a reliable supplier''.

Barroso and the full European Commission were in the German capital to discuss Germany's presidency of the European Union, which began this month.

Berlin will be responsible for leading European efforts to map out an energy strategy for the bloc over the coming months.

It also has the difficult task of negotiating a new EU-Russia cooperation pact, although those talks have been held up by a trade dispute between Moscow and Warsaw over meat.

MERKEL TO MOSCOW She said she planned to tell both Russia and Belarus that such consultations were a ''minimum'' in the event of disputes over energy. Merkel is due to travel to Moscow for talks with President Vladimir Putin later this month.

She spoke as an opinion poll showed that a big majority of Germans think their country is too heavily dependent on Russian oil and gas.

The N24-Emnid poll found 71 percent of respondents thought Germany was too reliant on Russian energy, while only 22 percent said they did not think the country was excessively dependent.

The cut is reminiscent of a stand-off last year between Russia and Ukraine that hit gas supplies to Europe. It escalates a tit-for-tat dispute between Russia and longtime ally Belarus, which have imposed punitive oil levies on each other.

Brussels has summoned its Oil Supply Group of national experts to a meeting on Thursday to discuss the implications of the pipeline shutdown and ''to possibly explore measures in the case of any shortage of oil products'', an EU statement said.

Putin said today Russia may trim output, signalling his resolve to force Belarus to climb down in the trade dispute.

The Druzhba pipeline carries two-fifths of Russia's total oil exports and supplies Germany with about a fifth of its annual needs.

It has a capacity of over 2 million barrels per day (bpd), of which some 1.4-1.6 million bpd go directly to consumers in the EU, representing about 12.5 percent of oil consumption in the 27-nation bloc.

The Commission has called a meeting on Thursday of EU oil supply experts to discuss the situation.

It is due to present an energy and climate action plan tomorrow for the bloc which proposes a bold unilateral cut in greenhouse gas emissions and liberalisation of energy markets.

Reuters BDP GC2104