BELARUS NEWS AND ANALYSIS

DATE:

29/01/2007

Lukashenko Cancels Oil Transit Agreement with Russia

Belarusian President Alexander Lukashenko has announced that he is annulling the agreement with Russia on oil transit, ITAR TASS reports. He suggested that payments be recalculated.

"The delegation that is in negotiations received direct instructions from me: those companies that such contracts for such prices for pumping oil to Europe will be charged an additional duty. So that we can compensate for our loss beyond world prices. "We know where the sensitive spots are for those who are trying to strike at us. We will impose duties on tractors, refrigerators, washing machines, televisions and other goods," Lukashenko stated.

Belarusian authorities imposed a duty on the transit of Russian oil on its territory on January 1, but Russia refused to pay it. Then it became known that Minks was tapping Russian fuel as payment of the new duties and Moscow stopped pumping gas through the Belarusian segment of the pipeline.

As a result, many European countries did not receive oil from January 8 until a Russian-Belarusian agreement was signed on January 12. On January 23, Lukashenko stated that he would charge Russia rent for the land the pipeline covers.

Source:

http://www.kommersant.com/p-9962/r_527/Alexander_Lukashenko_oil_transit/