BELARUS NEWS AND ANALYSIS

DATE:

12/01/2007

Russian, Belarusian PMs to continue talks on energy, trade

MOSCOW, January 12 (RIA Novosti) - Trade and energy talks between the prime ministers of Russia and Belarus, expected to focus on a bilateral energy pricing and tariff dispute, will continue in Moscow Friday.

Talks between Mikhail Fradkov and Sergei Sidorsky began Thursday night at the Russian Government House after nine hours of consultations between the ex-Soviet neighbors' delegations on energy supplies and other trade issues, following a standoff over oil supply and transit, during which Russia halted crude exports to Europe via Belarusian pipelines.

Earlier Thursday, Russian pipeline monopoly Transneft resumed Europe-bound oil supplies via the Druzhba (Friendship) oil pipeline system passing through Belarus, ending an export interruption that lasted several days.

Fradkov said at the launch of the talks that the sides "would like to find a balanced and transparent resolution" of the problems that caused the oil dispute.

The Russian premier admitted that the country's image as a reliable energy supplier has suffered because of the dispute.

Moscow halted deliveries to Europe via the pipeline on January 7, saying Belarus was illegally tapping oil, following a tit-for-tat price and tariff dispute. Belarus imposed a transit levy of $45 per metric ton of crude after Moscow doubled the price of natural gas and introduced a duty on oil supplies to Belarus as of January 1.

The supply interruption affected Germany, Poland, Hungary, the Czech Republic and Slovakia.

The standoff, which drew parallels with an energy row with Ukraine involving natural gas this time last year, triggered further accusations in Europe that Russia is using hydrocarbons as a political tool, and discussions on the need to diversify energy sources.

The presidents of Russia and Belarus, Vladimir Putin and Alexander Lukashenko, earlier set January 12 as a deadline for their countries' prime minister to find solutions to all problems relating to Russian crude oil transit via Belarus, according to the Belarusian leader's press-service.

Source:

http://en.rian.ru/russia/20070112/58938046.html