BELARUS NEWS AND ANALYSIS

DATE:

05/02/2007

Belarus hits Russia with 35% hike in oil transit fees

MINSK, February 5 (RIA Novosti) - Belarus will increase tariffs for transit of Russian oil through its domestic pipeline network by more than 30% on average starting February 15, the country's economics ministry said Monday.

According to new tariff regulations, Belarusian pipeline operator Gomeltransneft Druzhba will increase tariffs by 35%, to $3.50 per metric ton of oil along the Unecha-Adamova Zastava route, and by 31.6%, to $1.50 for transit along the Unecha-Brody route.

As a result, the ministry said, the average oil transit tariff will be $0.6 per ton for every 100 kilometers, which corresponds to Russia's domestic tariffs.

The Druzhba (Friendship) pipeline extends for almost 2,000 kilometers (1,300 miles) across Belarusian territory and pumps on average up to 80 million tons of Russian oil per year to Germany, Poland and Ukraine.

Russia halted deliveries to Europe via the pipeline 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 interruption in supplies affected Germany, Poland, Hungary, the Czech Republic and Slovakia, and further damaged Russia's reputation as a core energy supplier to Europe following a similar energy row with Ukraine involving natural gas this time last year.

Russia agreed to resume supplies after receiving a Belarusian government resolution abolishing the transit levy on Europe-bound Russian oil.

The standoff triggered more accusations in Europe that Russia is using hydrocarbons as a political weapon, and discussions on the need to diversify energy sources.

The current transit tariffs were introduced in 1995 and have never been changed.

Source:

http://en.rian.ru/world/20070205/60243313.html

Google