BELARUS NEWS AND ANALYSIS

DATE:

04/01/2010

New Russian Oil Dispute With Belarus Puts European Supply In Jeopardy

Graham Winfrey

AP Russia Belarus

Russia and Belarus failed to renew thier crude oil agreement that expired on New Year's Eve, increasing the likelyhood of yet another fuel shut-off during the dead of winter.

The disagreement pertains to export tarrifs on crude oil, similar to a dispute that went on for weeks last year between Russia and Ukraine over natural gas prices and transit fees.

This year, the crude oil pipeline under dispute is a crucial component of Siberian petroleum exports to Western Europe via the Druzhba pipeline system.

The New York Times: As is the case with natural gas pipelines in Ukraine, about 1.3 million barrels of oil per day shipped along the Belarussian spur of the Druzhba pipeline supply both the internal market in Belarus and the more lucrative markets in the European Union, like Germany and Poland.

On Sunday, Reuters cited two oil traders as saying that Russia had begun curbing supplies to the domestic market by cutting the flows to two refineries, Naftan and Mozyr. In Ukraine last January, that was a first step toward a more general shutdown.

Russian officials have emphasized that the export volumes will continue to flow, but have not commented on the report of a local shut-off in Belarus.

Source:

http://www.businessinsider.com/russia-picks-another-fight-over-crude-oil-puts-european-supply-in-jeopardy-for-second-straight-year-2010-1


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