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Russia gas giant Gazprom warned Belarus on Wednesday that it might cut natural gas supplies to the country if no deal on a price hike is reached by the New Year.

"If Gazprom does not sign a contract with Minsk, we will have no grounds for supplying gas to Belarus from 10:00 AM Moscow time (07:00 GMT) on Jan. 1," Gazprom chairman Alexei Miller was quoted by the Itar-Tass news agency as saying.

Belarus is buying gas from Russia at US$46.7 per 1,000 cubic meters. Miller said the current contract expires on Dec.31.

Gazprom is demanding Belarus pay US$105 per 1,000 cubic meters next year, with US$75 in cash and US$30 in shares in the country's gas transport company Beltransgaz. Belarus has so far rejected the price.

Miller said Gazprom had sent its partners in Lithuania, Poland and Germany notifications on possible troubles in gas transit via Belarus starting Jan 1.

"But Gazprom will supply gas to its European consumers to the border with Belarus in full volume and in compliance with the effective contracts," he said.

Russia provides about a quarter of the gas needs in Europe and about 20 percent of that gas transits Belarus, much of it to Germany, Poland and Lithuania.

Russia, the world's biggest gas producer, has hiked the prices of gas supplied to former Soviet republics.

Gazprom reached agreement with Moldova on Tuesday to sell the country gas at US$170 per 1,000 cubic meters next year, up from the US$160 it is paying now. Last week, Georgia signed contracts with Gazprom for gas deliveries in 2007 at US$235 per 1,000 cubic meters, a doubling of the price it pays this year.

(Xinhua News Agency December 28, 2006)