BELARUS NEWS AND ANALYSIS

DATE:

11/01/2007

Oil flows as Moscow-Minsk dispute is resolved

Oil has begun to flow through the Druzhba pipeline after a dispute between Russia and Belarus was resolved. Supplies have been reinstated for Poland, Germany, Ukraine, Slovakia, the Czech Republic and Hungary. Russia's ambassador to the EU, Vladimir Chizhov, welcomed Belarus's decision to cancel a transit tax it had imposed on Russian oil passing through its territory.

However EU officials say the rupture in supplies, coming after a dispute with Ukraine last year, has undermined their faith in Russia as a supplier. Officials from Russia and Belarus will meet EU representatives in Brussels for a de-brief this morning.

The pipeline carries crude oil to western Europe. There were fears in the EU that the crisis could lead to a shortfall. Russia turned off the tap on Sunday when it claimed Belarus had been siphoning off supplies as payment in kind for the unpaid duty, which Moscow claimed was illegal. The duty had been imposed in retaliation for a hike in prices.

Source:

http://euronews.net/create_html.php?page=detail_info&article=400353&lng=1