BELARUS NEWS AND ANALYSIS

DATE:

12/01/2010

Russia Oil Contracts To Belarus To Expire In One Day - Source

MOSCOW (Dow Jones)--Russia could halt oil deliveries to refineries in Belarus within a day, as existing supply contracts expire, while new ones still aren't in place, an unnamed source at Russia's oil pipeline company Transneft (TRNFP.RS) said Tuesday.

Russia began curbing supplies through the Druzhba pipeline to Belarus' domestic market after a pricing deal between the two countries expired Dec. 31.

"Shipments could come to a halt within a day," the person said.

"There are no new contracts in place to deliver oil to Belarussian refineries," he said, adding that it is unclear whether Russian producers will sign new contracts with Belarus.

Belarussian refineries can work another three to four days on existing reserves, the person added.

Moscow and Minsk previously failed to agree terms for 2010 on New Year's Eve, and fears have been raised that energy supplies to Europe could be affected as Belarus is a key transit country for Russian oil. The Druzhba pipeline system supplies about 10% of the European Union's oil needs.

Talks between officials from the two countries ended without result Saturday, but both sides say they remain willing to continue negotiations.

-By Jacob Gronholt-Pedersen, Dow Jones Newswires

Source:

http://online.wsj.com/article/BT-CO-20100112-710031.html?mod=WSJ_latestheadlines


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