BELARUS NEWS AND ANALYSIS

DATE:

05/01/2007

Russia-Belarus oil row won't hit Europe supply

Russia and Belarus promised yesterday to keep pumping oil to Europe, after Minsk slapped a duty on transit shipments of Russian crude in a trade row that has shaken the ex-Soviet states' strategic alliance.

Belarus President Alexander Lukashenko on Wednesday imposed a transit fee of $45 per ton on crude pumped westwards through the Druzhba ('Friendship') pipeline system.

The move raised the stakes in a dispute in which Russia has imposed duties on oil sales to Belarus, forced Minsk to pay double for gas imports and banned imports of Belarussian sugar.

But, despite trading recriminations, both sides said there would be no disruptions to the two-fifths of Russia's crude exports that are shipped across Belarus.

"Russia has on many occasions proved itself to be a reliable supplier and there is no threat to deliveries," Kremlin spokesman Dmitry Peskov said. State pipeline monopoly Transneft said shipments were running normally.

Belarus trans-shipped 90 million tons of Russian oil last year through the main Druzhba line to Poland and Germany, and through a southern spur to Slovakia, the Czech Republic and Hungary.

"The actions of Belarus will have no impact on deliveries of oil to third countries," said Andrei Popov, a spokesman for the Belarussian Foreign Ministry.

Popov accused Russia of violating free trade and customs agreements. Russia shot back that the transit duty was "unprecedented", but Deputy Economy Minister Andrei Sharonov still urged dialogue.

Politically, the two countries have much in common, with Lukashenko despising the notion of any revolutions in Belarus with the same disdain as Russia. The two countries have long talked about forming a common state.

But the belief is widespread in Minsk that Russia's energy offensive is part of a Kremlin strategy to force Belarus into a merger on unfavourable terms. Moscow, meanwhile, believes Belarus is exploiting a customs union for excessive gain.

Source: China Daily/agencies

Source:

http://english.people.com.cn/200701/05/eng20070105_338519.html