BELARUS NEWS AND ANALYSIS

DATE:

12/01/2007

Russia slashes Belarus oil export duty from $180.7 to $53 per mt

MOSCOW, January 12 (RIA Novosti) - After two days of oil negotiations, Russia reduced its oil export duty for Belarus from $180.7 to $53 per metric ton, the Russian premier said Friday.

The oil export duty, effective from January 1, 2007, ends horse-trading between the two former allies, which disrupted Russian crude supplies to Europe and tarnished Russia's reputation as a reliable energy supplier.

The two sides also agreed that Russia would receive 70% compensation from Belarus's exports of refined Russian oil in 2007, 80% in 2008 and 85% in 2009, Russia's Prime Minister Mikhail Fradkov said.

Early on Thursday, Russian pipeline monopoly Transneft resumed Europe-bound oil supplies via the Druzhba (Friendship) oil pipeline system passing through Belarus, ending a halt in exports that lasted several days. The supply interruption affected Germany, Poland, Hungary, the Czech Republic and Slovakia.

Moscow halted deliveries to Europe via the pipeline on January 7, saying Belarus was tapping oil, following a tit-for-tat price and tariff dispute. Belarus imposed a transit levy of $45 per metric ton of crude after Moscow doubled the price of natural gas and introduced a duty on oil supplies to Belarus as of January 1.

The standoff, which drew parallels with an energy row with Ukraine involving natural gas this time last year, triggered further accusations in Europe that Russia was using hydrocarbons as a political tool, and discussions on the need to diversify energy sources.

The presidents of Russia and Belarus, Vladimir Putin and Alexander Lukashenko, earlier set January 12 as a deadline for their countries' prime ministers to find solutions to all problems relating to Russian crude oil transit via Belarus, according to the Belarusian leader's press-service.

Source:

http://en.rian.ru/russia/20070112/58992033.html