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Russia Refuses To Compensate Belarus For Tax Maneuver

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Russia Refuses To Compensate Belarus For Tax Maneuver

The Russian Foreign Ministry has called the conversations on this topic "inappropriate."

"The tax maneuver is a sovereign right of Russia, so it is hardly appropriate to talk about any "compensation." We are talking about possible assistance to Belarus in mitigating the consequences of the "tax maneuver" in Russia. This issue is under consideration and will be resolved in a comprehensive manner. In this regard, it's too early to give any assessment now," - Deputy Foreign Minister of Russia Grigory Karasin said in an interview with RIA Novosti.

It is worth reminding that Minsk offers Moscow to compensate for the losses caused by the tax maneuver in Russia, which will lead to the rise in oil prices for Belarusian refineries. Belarus estimates its losses to be $383 million in 2019, while the oil price will be $70 per barrel. Within six years, total losses for Belarus will amount to about $10.8 billion.

The tax maneuver was actively discussed at the end of last year. Then Lukashenka said that Russia had promised to compensate for the losses caused by the tax maneuver, while the Russian government reported that there had been no agreement with Minsk on compensation. This issue was supposed to be discussed at the meeting of the President of Belarus and the President of Russia at the Forum of Regions in St. Petersburg, but no statements on this issue were made.

"It's too early to talk about compensation for dirty oil"

Grigory Karasin also notes that the issue of compensation to Minsk for substandard oil in the pipeline Druzhba is being studied, so it's still too early to talk about the details, including the amount of possible compensation.

"Currently, the work on the settlement of the situation with the inflow of substandard oil into the main oil pipeline Druzhba. The Ministry of Energy of Russia and PAO Transneft coordinate their efforts in this regard. The issue of compensation is also under consideration, so it is too early to talk about specific details," - Karasin said.

We will remind you that April 19, Belneftekhim announced a sharp deterioration in the quality of the Russian oil coming in transit to the section of the main oil pipeline Gomeltransneft Druzhba. The content of organochlorine compounds in the oil exceeded the standard limit values by dozens of times. As a result, oil supplies to two Belarusian refineries were limited. Clean oil began to be delivered to the border of Belarus via the Druzhba pipeline on May 2. Currently, the authorities of Belarus and Russia are trying to calculate and agree on the amount of damage caused.

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