BELARUS NEWS AND ANALYSIS

DATE:

08/11/2007

Belarus may increase oil transit tariffs in 2008

MINSK. Nov 8 (Interfax) - Belarus may raise tariffs for oil transit through the Druzhba pipeline system, a source in the Gobeltransneft Druzhba company told Interfax on Thursday.

"Energy resources account for about 50% of oil transit costs. Naturally, the energy component will increase due to higher prices for natural gas and consequently, higher electricity tariffs. To avoid financial losses, the company is forced to increase transit tariffs," he said.

The Belarusian Economy Ministry, which has the ultimate say in the issue of tariffs, has already been informed of the company's opinion, the official said.

Asked how much oil transit tariffs could be expected to rise, he said that all depended on the price of incoming gas in 2008.

Belarus should coordinate its actions with Russia but as oil and gas prices tend to increase, prices for the transit of hydrocarbons in Russia are increasing too, the spokesman said.

Starting from February 15, 2007, Belarus has raised oil transits by more than 30% to $0.6 per ton/100 km. Before that, the tariffs had not changed since 1995. Under the existing bilateral agreements, the Belarusian side should notify the Russian company Transneft (RTS: TRNF) about planned tariff increases.

Source:

http://www.interfax.com/3/333173/news.aspx