Pies or Pancakes, Cheese or Butter

UPDATE: BELARUS - RUSSIA GAS DISPUTE

• Following an order from President Dmitry Medvedev, Gazprom has started to reduce gas supplies to Belarus, starting with a 15% cut in daily deliveries that will gradually rise to 85%.

• Belarus, citing difficulty borrowing currency, says that it will pay in full by June 23 for Russian gas supplied in May, and settle the total debt in two weeks. Russia wants cash, not barter in "pies or pancakes, cheese or butter."

• Russia has informed the European Union about its gas dispute with Belarus. Energy Commissioner Gunther Oettinger has received a notification letter from Russian Energy Minister Sergei Shmatko.

• Belarus warns "Further cuts of gas supplies by the Russian side may lead to technical reduction of gas transit to Europe," in a letter to Anne Houtman, a top official in the European Commission's Directorate General for Energy and Transport.

• Russia warned of possible disruptions, while also saying it could reroute its gas transit to Europe via Ukraine and Poland and did not expect deliveries to Europe to be affected.

• Ukrainian gas company Naftogaz, said it was ready to increase Russian gas transit to Europe if the gas dispute between Russia and Belarus was not resolved.