Russia won’t abandon export dues for Belarus

The government of Russia has introduced for consideration by the State Duma the draft law on trade and economic balance adjustment measures in the sphere of oil and oil products export.

According to preliminary reports, the document uphold favourable conditions for receiving Russian oil, however the export duties imposed since 2007 on oil delivered to Belarusian oil refineries, though Belarus insists on their liquidation, “BDG” informs.

Earlier the Belarusian side proposed to return to the mechanism of Russian oil deliveries which was used before 2007. According to it, oil received by Belarusian oil refineries was not subject to export duties. In its turn Belarus promised to remit 5% of duties from oil products export to Russian budget. In reality Belarusian government was not fulfilling this commitment.

As a result Russia imposed an export duty for oil which is equal to 29.3% of customs duty rate for crude oil exported to non-CIS countries. It was specified that in 2008 the rate would grow to 33.5%, and in 2009 to 35.6% under the condition that oil would be processed in Belarusian oil refineries. These figures are likely to be approved by the Russian State Duma.

In case these agreements would not be changed, increase in export duty for oil would reduce economic feasibility of the oil refining industry as it was last year, and reduce appeal of Belarus for Russian companies that work with Belarus on conditions of processing. It is obvious that inying of this case such issues of functioning of the field as search for resources for independent buying raw materials, and further subsidizing of Russian processors would be relevant.