Belarus and Russia Friday signed a gas transit deal expected to end disagreements that caused brief shortages of Russian natural gas in Europe last week, Russia 's state gas firm OAO Gazprom (GAZP.RS) said Friday.

Belarus , an important transit country for Russian energy supplies to Europe , cut westbound shipments of natural gas last week, escalating a dispute over unpaid gas bills between the two former Soviet states.

Belarus --traditionally a close Kremlin ally--had accumulated debt of $200 million for gas used this year, and said Gazprom was paying too little for shipping gas through Belarus to Europe .

Last week, Gazprom paid Belarussian pipeline operator Beltransgaz $228 million in gas transit fees, but Belarus insisted the Russian gas firm owed it another $32 million. Gazprom said then it would pay the extra amount, once the new transit deal was signed.

Friday, Gazprom agreed to Belarus ' terms, raising the transit fee to $1.88 per 1,000 cubic meters per 100 kilometers, for 2010.

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