Russia and Belarus have signed a new contract for 2007 gas suuplies.

The deal reached late Sunday followed last minute talks in Moscow. Details were not immediately available.

Russia’s state-run gas monopoly Gazprom had been threatening to cut the natural gas supply to Belarus on Monday unless an agreement was reached on a price increase.

Gazprom has demanded Belarus pay a market-driven price of $105 per 1,000 cubic meters of natural gas beginning January 1. As a close Russian ally, Belarus has been paying roughly $46.

Officials in Minsk said Saturday they had reached a pricing agreement, but Gazprom officials denied such a deal.

Belarusian officials had threatened to retaliate for any gas cutoff by disrupting Russian gas supplies crossing its territory to Europe.

Some information for this report was provided by AFP and AP.

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