An oil dispute which has cut off a major artery between Russia and much of Europe was a step closer to being resolved today - as the European Commission published a major new strategy designed to ease its dependence on unreliable Russian energy.

According to a statement made by the Belarrussian presidency, a deal was struck in a telephone conversation between President Putin and Aleskandr Lukashenko, his Belarussian counterpart, which should soon lead to the closed pipeline between Russia and Europe, via Belarus, being reopened.

The two presidents have now ordered their prime ministers and officials to draw up a package of measures for approval by Friday which will pave the way to restore oil supplies through the pipeline, which has been closed since Monday.

Significantly, the agreement was reached at the same time as the European Commission published a major new document specifically designed to curb European over-reliance on Russian oil, which leaders regard as increasingly unreliable after major disputes between Russia, Ukraine and Belarus halted or delayed supplies over the last year.

European leaders are concerned that any long-term halting of oil supplies will lead to critical energy shortages within the EU and price rises, although European countries have reserves to deal with any short-term crises.

The European Commission's energy strategy, launched today, calls on member states to cut all greenhouse gas emissions by at least 20 per cent by 2020, with Jose Manuel Barroso, the EC president, demanding a unified response to climate change.

However, he added that the strategy was also crucial for political reasons, because finding alternative sources of energy will make European energy supplies more secure and ease an over-reliance on oil. This includes investing in renewable energy, he said.

"We need policies to face a new reality - policies which maintain Europe's competitiveness, protect our environment and make our energy supplies more secure," said Mr Barroso.

Mr Barroso demanded Europe lead the world in a "post-industrial revolution", where new energy sources were found to meet the world's problems.

Speaking at Prime Minister's Questions, Tony Blair backed the call for a secure energy supply, saying: "I do think it is extremely important that we as a country make sure that our energy supply is secure for the long term. That, in my view, needs a diverse supply of energy."

Meanwhile, despite the concern over the latest Russian oil crisis, the current dispute was showing vital signs of easing today.

In a statement, the Belarrusian presidency's press service said the presidents of Belarus and Russia reached an understanding after a telephone conversation this morning. "In the course of the conversation, a compromise was found which enables us to resolve the current deadlock, including concerning the transit of Russian oil to European countries through the territory of the Republic of Belarus," a statement said.

The two presidents have now ordered their prime ministers and officials to draw up a package of measures for approval by Friday which will pave the way to restore oil supplies through the pipeline, which runs from Russia via Belarus to Europe.

The crisis kicked off on Monday, when Russia suddenly stopped pumping oil to Europe via the Druzhba, or Friendship, pipeline that crosses Belarus, accusing its neighbour of siphoning off oil, a charge which Belarus rejected.

The dispute centres over Russia's decision to impose a hefty duty on oil exports to Belarus, with Moscow complaining that the previous duty-free regime has been costing the Russian budget up to £2 billion a year.

Minsk, whose isolated regime is tied to Moscow through a loose union treaty and relies on cheap Russian energy and duty-free trade with Russia, hit back by slapping duties on Russian oil pumped across Belarus to Europe.

About 40 per cent of Russian oil exports cross Belarus through the pipeline, which pumps more than 1.2 million barrels a day into Europe. It provides almost a quarter of Germany’s needs and 96 per cent of Poland’s imports, as well as supplies to Ukraine, Hungary, Slovakia and the Czech Republic.

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