BELARUS NEWS AND ANALYSIS

DATE:

10/01/2010

Oil talks fail between Russia, Belarus: news agencies

MINSK (AFP) - Belarus and Russia failed Saturday to overcome their dispute over oil supplies, but they remain willing to keep talking, a Belarussian government spokesman said, quoted by Russian news agencies.

"The Belarussian and Russian delegations have again failed to reach a compromise solution and to sign documents on conditions for oil deliveries to Belarus," said the spokesman, quoted by the Ria Novosti news agency.

Nevertheless, the two sides "expressed their willingness to continue talks", he said, after representatives from the two nations met for several hours Saturday in Moscow.

Moscow and Minsk previously failed to agree terms for 2010 on New Year's Eve, and fears have been raised that energy supplies to Europe could be affected, as Belarussia is a key transit country for Russian oil.

Three years ago, another dispute between Moscow and Minsk led to the brief closure of a pipeline through Belarus which carries around a third of Russia's total oil exports to Europe.

Deputy prime minister Vladimir Samachko was part of Belarus's negotiating team on Saturday, and his presence in Moscow had raised hopes that a deal might be struck.

Quoting the Belarussian government press service, the Interfax news agency said the Belarussian delegates set out their position, backed up by data, only for the Russians to "ignore their arguments".

Belarus -- which earns income from refining and reselling Russian crude oil -- is opposing a Russian customs duty on oil that went into effect on New Year's Day.

Moscow says the dispute will have no impact on deliveries of Russian oil to Europe, which is enduring one of its toughest winters in years.

Earlier on Saturday, Russian news agencies -- citing an anonymous Russian expert -- said Moscow proposed a customs duty exemption for oil intended for Belarus's own domestic use.

Belarus would thus get 6.3 million tonnes of crude oil tax-free for its own consumption, representing a savings of 18 billion dollars a year, based on a levy of 267 dollars per tonne.

"By dragging out the talks, the Belarussian side could lose these advantages," the expert was quoted as saying.

Source:

http://nz.news.yahoo.com/a/-/world/6660757/oil-talks-fail-between-russia-belarus-news-agencies/


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