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Kommersant, Novye Izvestia

enterprises," said Andrei Suzdaltsev, deputy head of the World Policy Department at the Moscow-based Higher School of Economics.

"Lukashenko initially agreed [to this], but then went back on his word," Suzdaltsev said. "Belarus wants Russia to supply 21.5 million metric tons (158.02 million bbl) of duty free oil in 2010, which amounts to a direct subsidy of between $5.5 billion and $6 billion. This would allow Belarus to weather the economic crisis."

Having failed to settle the problem, Russia and Belarus are now making mutual threats. An anonymous "leading oil expert" in Russia said: "Belarus may lose its privileges if it draws out the talks." In response, Belarus threatened to raise the oil transit duty. On December 30, President Lukashenko even said Belarus would withdraw from the Customs Union if Moscow ignored his country"s energy interests.

The partners have so far not acted on their threats, which is a new element in the end-of-year energy wars.

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