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Russia resumes crude deliveries to Belarus

Russia`s Transneft pipeline monopoly on January 25 resumed crude deliveries to Belarus after a break that lasted almost a month, Transneft spokesman Igor Demin told BelaPAN.

Oil is pumped to both Belarusian oil refineries, the Naftan plant based in Navapolatsk and the refinery in Mazyr, the spokesman said.

Mr. Demin said that Transneft and the Belarusian government had finally hammered out a price deal, refusing to disclose its details.

According to unconfirmed reports, the Belarusian government was forced to accept Transneft’s terms to prevent the suspension of the operation of the two refineries.

Under a deal struck by the two countries in December, Russian oil is to be supplied to Belarus free of duty this year, while Minsk, in exchange, is to give Moscow all revenues from its export duty on petroleum products made from Russian crude.

Belarus wants Russia to supply 21.7 million tons of oil this year, including 18 million tons through pipelines.

Despite the new oil trade arrangement, however, the two countries were locked until Tuesday in a dispute about the price of crude to be supplied to Belarus this year.

In particular, some Russian oil suppliers were said to be insisting on adding another $45 to the per-ton price of crude destined for Belarus, which they said would make oil shipments to the country and elsewhere equally profitable.

Belarusian Prime Minister Mikhail Myasnikovich and his Russian counterpart, Vladimir Putin, directed at their talks on January 21 that the dispute must be resolved by the countries` deputy prime ministers within the next few days.

Mr. Putin said that Russia expected the dispute to be resolved "in a constructive manner."

"We`re holding a continual dialogue and consultations, expecting that all issues in the sphere will be resolved in a constructive manner with the interests of our countries` economic entities taken into account," Mr. Putin said.