BELARUS NEWS AND ANALYSIS

DATE:

10/01/2007

Russia to Introduce Duties on Belarus Goods

Russia may introduce in February the duties on goods imported from Belarus, Vedomosti reported Wednesday referring to an anonymous source with the government. This action will be taken in response to the crude transit duties imposed by Belarus.

Russia introduced customs duties on sugar imported from Belarus December 29, 2006. In February, the duties will probably extend to meat and by-products, milk and dairy products, TV sets and furniture, the source said, signaling the sanctions will cover the better part of all goods that Belarus exports to Russia ($6 billion in terms of money).

If taken, the actions will mean a temporary break of the Customs Union with Belarus, but the Kremlin has found no other solution of the problem so far, according to the source.

The relations of Moscow and Minsk clouded late past year once Gazprom voiced its intention to hike the gas prices. The compromise agreement was sealed at New Year's night just a few minutes before the previous agreement finally expired.

On January 1, 2007, however, Belarus imposed duties on crude transit from Russia. Moscow refused to pay and Minsk reacted by unauthorized withdrawal of crude from Druzhba pipeline. On January 8, 2007, Russia's pipeline monopoly, Transneft, terminated deliveries in this direction, having disrupted supplies to some states of Europe.

Source:

http://www.kommersant.com/p-9827/duties_introduce/