BELARUS NEWS AND ANALYSIS

DATE:

08/01/2007

Another Belarus-Russia standoff; oil pumping through Druzhba halted

Author : Alan Cross

MOSCOW: Pumping of oil from a Russian oil pipeline across Belarus has halted overnight following another dispute between the two countries. The disruption can lead to fuel shortages in Europe, especially Poland.

The stoppage of pumping comes after Belarus dragged the head of Russian pipeline company Transneft into court over failure to pay a new oil shipment tax on oil supplies using the pipeline passing through Belarus and Russia demanded that Belarus end the transit fee imposed on it. The two countries had earlier ended a standoff after Russian oil monopoly Gazprom forced Belarus to accept a huge increase in the price of Russian gas.

The whole of Europe relies on Russian oil to make heating oil and other products.

A spokesperson for Polish pipeline operator PERN said oil supplies via the Druzhba pipeline to Poland and Germany had been halted overnight and the company had sent an urgent message to Belarus seeking explanations.

The delicate relations between Russia and Belarus had been severely affected by the state monopoly Gazprom's decision to impose duties on oil and double gas prices. Belarus had then threatened to stop the pumping of gas through the pipeline that passed through its territory. As Russian strategy to increase the price prevailed, Belarus imposed a hefty transit fee on the Russian oil pumped.

Meanwhile, Transneft charged Belarus with stealing crude from the Druzhba line and said it would try to reroute supplies to its European customers. Belarus denied the charge. The Druzhba pipeline to Central Europe is one of the world's longest. One part supplies to Poland and the other to Germany.

Belarus issued a subpoena to the head of Transneft to appear in court over charges of illegal oil transits to third states. Countering this, Russia's economy ministry asked Belarus to scrap the transit fees.

Meanwhile, the EU energy commissioner's office is reviewing the situation. The commissioner, Andris Piebalgs, has been in contact with both Belarus and Russian authorities and is monitoring the situation. A spokesperson for the commission said either Germany or Poland is not facing any oil shortages in the short term.

Source:

http://www.earthtimes.org/articles/show/18367.html