Russia delivers ultimatum on oil

The Russian first vice premier warned the Belarusian authorities the country must pay for oil on European prices, if a contract with Russia is not signed until January 1.

Moscow and Minsk can sign an agreement on temporary supplies of Russian oil to Belarus until December 31. According to REGNUM, it was said by Russian vice premier Igor Sechin on December 28.

According to him, the countries had the last round of negotiations on the issue on December 26; Russia presented its proposals to the Belarusian authorities. Sechin expressed confidence that the agreement on temporary supplies of Russian oil to Belarus would be signed until the end of the year.

“If the agreement is not signed (I am sure it will happen), a common regime, paying 1005 customs fees will take into force from January 1,” the Russian first vice premier explained, RBK reports.

On December 18, Russian vice premier Igor Sechin said Russia had offered Belarus duty-free supplies of 5¬–6 million tonnes of oil per year for domestic needs. The rest oil (Minsk plans to purchase more than 20 million tonnes in 2010) will attract 100% of customs duties.

Belarusian vice premier Uladzimir Syamashka said Moscow and Minsk had agreed on duty-free supplies of 8–9 million tonnes of oil. What to the rest volume, it was ordered to work out a new agreement in the spirit of the Customs Union, according to which export customs duties are not paid, but the export duty is divided by oil products, produced from Russian oil on Belarusian refineries.