BELARUS NEWS AND ANALYSIS

DATE:

04/01/2007

Belarus imposes new transit duty on Russian oil

Author : Zipporah Koganowich

MINSK - Belarus has once again stoked the fire of confrontation with the Kremlin by deciding to impose transit duty of $45 per tonne on oil from Russia that crosses into its territory. This step is being seen as a direct answer to Russia's decision to suspend the high subsidies on energy supplies to the country.

The imposition of the new duties is definitely not welcome news for many refiners in Europe, particularly the northern area, who are caught in the crossfire between the Kremlin and Belarus.

The former Soviet republic is heading for a fiery confrontation with Russia, which previously supplied oil and gas at low prices to former Soviet countries. However in a sharp policy change Kremlin decided to levy a charge of $235 per 1,000 cubic meters to these countries as well. Until now Belarus was paying just $47 per 1,000 cubic meters.

It refused to acknowledge the new prices leading state-owned entity Gazprom to almost cut off the supplies leading into the New Year. Faced with a crisis, Belarus agreed to shell out $100 in 2007 and gradually accept European prices.

Belarusian President Alexander Lukashenko reacted with the new transit tax just days later. "If Russia, choking on this influx of petrodollars... is still willing to make a scapegoat of Belarus ... then let's ask the Russian Federation -so huge and so rich - to pay us in full for our services," he observed.

However Russian monopoly Transneft felt that Belarus would be hard pressed to legally impose the new duties. "As for the transit shipping fee, it's set by inter-governmental agreements, and therefore it cannot be changed without Russia's accord," said Transneft vice president Sergei Grigoryev.

Source:

http://www.earthtimes.org/articles/show/17611.html

Google
 


Partners:
Face.by Social Network
Face.by