BELARUS NEWS AND ANALYSIS

DATE:

14/12/2006

Belarusian Lawmaker Deplores Moscow's Decision To Tax Oil Exports

Anatol Paulovich, head of the Chamber of Representatives' Committee for Industry, Fuel, and Energy, told Belapan on December 13 that Russia's recent decision to slap a duty of $180 per ton on crude oil exported to Belarus as of January 2007 (see "RFE/RL Newsline," December 13, 2006) undermines the foundations of the Russia-Belarus Union State. "It's in violation of fundamental things that are provided for by the Agreement on the Formation of the Union State signed by the two heads of state, and agreements on equal rights of economic entities and equal conditions for economic activities," Paulovich stressed. The Russian measure is expected to deprive Belarus of an estimated $1.7 billion annually in profits from the sale of petroleum products refined from the Russian crude. Meanwhile, Oleg Panteleev from Russia's Federation Council was quoted as saying on December 13 that the Kremlin's tax on crude oil exports to Belarus was "absolutely correct." Panteleev stressed that it was time for both countries to separate "neighborly from economic relations," and he called on the Belarusians to "take no offense" at the move. JM

Source:

http://www.rferl.org/newsline/2006/12/3-cee/cee-141206.asp