New “war” caused by duties on oil products?

The government demands to ban collecting duties by Russia, as it “hits Belarusian enterprises painfully”.

The Justice Ministry of Belarus does not agree with the decision of the Economic Court of the CIS which denied motion to temporarily ban collecting duties on oil products delivered to Belarus by Russia, and asks to call together the plenary session of the court to consider this issue.

“The Belarusian side does not agree with the decision and in the Economic Court of the CIS,” Interfax agency was stated by the Justice Ministry press service.

“Considering that Russia continues to collect duties from oil products affects interests of more than 70 large enterprises of Belarus and Russia, damages interests of the established cooperation ties of the enterprises of the two countries, the Justice Ministry asked the court to call together the plenary session of the court and consider the statement of Belarus on suspending collecting duties on oil products by Russia until the issue is finally resolved by the Economic Court of the CIS,” the ministry said.

The press-service has also stated that the Justice Ministry found it expedient to ask the court to hold a session of the plenary session in the shortest possible time. The invitation to the plenary session has been sent by the Justice Ministry of Belarus to all heads of courts of arbitration of the CIS.

Last Thursday the Economic Court of the CIS denied the motion of the Belarusian side submitted by the Justice Ministry to temporarily ban collecting duties on oil products delivered from Russia until the court would issue a final decision on the matter. The session of the Economic Court of the CIS on this case is scheduled on September 7.

The Belarusian side contests in the court imposing by Russia since January 1, 2010 export duties on oil products and oil materials delivered to Belarus.

The suit of the Justice Ministry of Belarus refers to the intergovernmental agreement on free trade of November 13, 1992 and the protocol on imposing free trade regime between Belarus and Russia of January 6, 1995 which stipulates that the sides do not collect duties in mutual trade. The Belarusian side believes that the only exclusion from the free trade regime is crude oil, on part of which export duty is imposed. The mutual trade in all other goods should be carried out duty-free, the Justice Ministry of Belarus stresses.

Since January 1, 2010 basing upon the teletypogram of the First Deputy Minister of the Russia, export customs duty is imposed on oil refining products including petrochemical raw materials, supplied from Russia to Belarus.