BELARUS NEWS AND ANALYSIS

DATE:

08/01/2007

Oil pipeline in Belarus stops operating

A Russian oil pipeline carrying supplies across Belarus to Poland and Germany stopped operating overnight in an increasingly bitter trade dispute between Moscow and Minsk, Polish officials said.

Only last week the ex-Soviet states promised to put their argument to one side and keep pumping oil to the rest of Europe whose refiners are heavily reliant on Russian supplies to make winter heating oil and other products.

The feuding grew more intense yesterday when Belarus subpoenaed the head of Russian pipeline monopoly Transneft and Russia demanded an end to oil transit fees imposed by Belarus.

"Oil supplies via the Druzhba (Friendship) pipeline to Poland and Germany were halted overnight. We sent a letter to Belarus asking for explanations," said Tomasz Zakrzewski, a spokesman for Polish pipeline operator PERN.

Deputy Economy Minister Piotr Naimski, in charge of Poland's energy policy, told all-news TV channel TVN24: "As far as we know it has to do with a dispute between the Russian Federation and Belarus over export duties on the one hand and transport fees on the other."

Russia's strategic alliance with Belarus has been shaken by Moscow's decision to impose duties on oil sales to its neighbour, double Russian gas prices and ban imports of Belarusian sugar.

Belarusian President Alexander Lukashenko - branded Europe's last dictator by Washington - fought back by slapping a transit fee on Russian oil pumped via Belarus. A spokesman for Belarus's state oil firm declined comment on the situation, directing reporters' questions to Transeft.

There was no immediate comment from the Russian side. Oil prices rose around 30 cents on the news. At 9.50am US crude was up 59 cents at $56.90. Russia is the world's second largest oil exporter and supplies around a fifth of Germany's needs.

Source:

http://www.ireland.com/newspaper/breaking/2007/0108/breaking29.htm

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