Agreement with Russia not signed, but oil flow continues

Russian Prime Minister Vladimir Putin ordered vice premier Igor Sechin to settle all problems with Belarus.

Russian continues oil transit through Belarus and resumed oil deliveries to the Belarusian refineries, though an agreement on duty-free oil supplies has not been signed with Minsk. According to RIA Novosti, it was said by Russian vice premier Igor Sechin at his meeting with Russian PM Vladimir Putin o January 4.

“We continue transiting oil to European consumers; yesterday we started shipments to the Belarusian refineries: about 100,000 tonnes of oil was supplies to the Navapolatsk plant, and 78,000 tonnes were shipped to the Mozyr plant,” Interfax quotes Igor Sechin.

Sechin reminded that on January 1, 2010, all decreasing coefficients expired. However, taking into account Russia’s “special attitude” toward our Belarusian partners, Russia proposed an extension of privileged (duty-free) supply costs in volume of 6 million tonnes of oil.

According to Sechin, the Russian party presented all proposals to the Belarusian partners.

Vladimir Putin told Sechin in turn: “I hope agreements will be reached in the nearest future on the basis of our common interests and the current Russian legislation.”

“We will do this,” the vice premier responded.

As the website charter97.org has earlier informed, Belarus and Russia failed to sign an agreement on conditions of oil deliveries as planned, on December 30–31. Russia announced a decision to deliver oil to Belarus since January 1, 2020 including 100% of export duty to the price. In 2009 a special duty of 35.6% of standard export due was included in the price.

In response Belarusian government stated that Russia exerts unprecedented pressure in the talks on oil deliveries. The two sides however confirmed they are ready to continue talks.

On January 2 talks on oil deliveries continued. It was confirmed by Russian Energy minister aide Irina Esipova. “Transporting is done in full measure, the process of negotiations is continued at the moment,” she said to journalists refusing to reveal details.

On the same day Vice President of Transneft company Mikhail Barkov stated that Russia would cut down volumes of oil transit via Belarus under no circumstances. As for oil deliveries to the Belarusian side, everything depends on the position of Minsk in this situation, he added.

However, Reuters informs referring to Russian oil traders that Russia halted oil flow to Belarusian refineries since 2010. This information was denied by Maryna Kastsyuchenka, a representative of Belneftekhim.