Cost of Russian oil transit through Belarus to increase by more than 50 per cent

The Ministry of Economy adopted a regulation on tariffs on oil transportation via the main oil pipelines in the Republic of Belarus. Transit tariffs on Russian oil products will go up 52.8 per cent.

On January 1, 2009, Belarus’ transit tariffs will amount to $1.36 per tonne per 100 kilometres.

As the press service of the Ministry of Economy reports, the resolution was adopted in line with the agreement signed by the Government of the Republic of Belarus and the Government of the Russian Federation on June 8, 2004 on the cooperation in exploiting the main oil pipelines located in the Republic of Belarus.

The relevant decision cancels resolution of the Economy Ministry #7 of January 17, 2005, according to which oil transit tariff was $0.89 per tonne per 100 kilometres.

According to the Ministry of Statistics, 71.3 tonnes of oil run through the main oil pipelines in January-October 2008 comprising 94.6 per cent of the amount for the period January-October 2007.

It should be reminded that on December 1, Russian prime minister Vladimir Putin signed an instruction to build the Baltic Pipeline System-2 (BPS-2), linking Unecha (Bryansk Region) and the Baltic Sea port of Ust-Luga. The pipeline is supposed to pump up to 50 mln tonnes per year. The construction works are planned to take 18 months.

An idea of the BPS-2 construction appeared amid the sharpest Russian-Belarusian conflict, when oil supplies via Druzhba pipeline were cut for Europe for four days due to Belarus’ transit demands. The BPS-2 is an alternative to Druzhba pipeline allowing to supply oil to Europe by-passing Belarus.

Scheduled for December 1 session of the supreme council of the “union state” was delayed. Alyaksandr Lukashenka didn’t arrive in Moscow. Russian media say the session was called off because the Belarusian party proposed gas prices issue to the agenda at the last moment.

For unknown reasons, the Belarusian budget for next year is calculated on price $140 per 1,000 cubic meters. Though the forecasts say the price will be higher in 2009 – around $200. “We don’t see any ground to review the acting contract,” Gazprom said. Minsk can’t count on lower prices as they are declined automatically according to the formula, the company noted.