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Costs for Russian oil transit increased by Belarus

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Costs for Russian oil transit increased by Belarus

Costs of oil transit along the route “Unecha-Adamova Zastava” (in the direction of Poland and Germany) has been increased by 22.5% to 3.43 Euro for pumping 1 ton of oil.

In the route “Unecha-Brody” (towards Ukraine) the tariff has been increased by 22.5% to 1.47 Euro.

Since January 6 by the of the Economy Ministry decree No. 2 of January 5, 2009 increased tariff for pumping of oil imported via oil pipeline “Gomeltransneft” Druzhba till Mozyr oil refinery, Interfax-Zapad informs.

The previous increase in tariffs for oil pumping was carried out by Belarus on January 6, 2008. Then tariff for oil transit along the route “Unecha (Vysokoe) – Adamova zastava” was increased by 15.7% up to 2.8 Europe per 1 ton.

70 million tons of Russian oil is transported via Belarus annually.

The Charter’97 press-centre has asked the well-known economist Leanid Zaika to comment on the tariff raising:

“The matter is that issues of transit payments are vital today as never before. Tariffs were unbelievably low, and when oil costs 15 dollars per thousand cubic metres, and were formed at the level of 30-50 cents. Cost for transportation is to make 20-25% of gas cost. When gas costs 450 dollars, then transit via Belarus, Poland and so on should cost about 100 dollars. The same situation is with oil. Proceeding from this model, transit countries should seek increase of costs for transit of oil and gas. In such a case a new transit era should begin, when pumping would be rather costly. If the European consumer pays for gas average 450 dollars, this increase wouldn’t become a decisive parameter for them,” Zaika believes.

As we have informed, on December 1, 2008 Russian Prime Minister Vladimir Putin signed an order about construction of the second trunk of the Baltic Pipeline System-2 (BPS-2). It is to connect the town of Unecha in Bryansk region with the Baltic port Ust-Luga. It is expected that the throughput capacity of BPS-2 will be about 50 million tons of oil annually. It is to be constructed within 18 months.

The idea to construct BPS-2 appeared during the most acute dispute between Russia and Belarus, when in early 2007 Europe was not receiving Russian oil via pipeline Druzhba for 4 days because of transit claims of the Belarusian side. The BPS-2 is the alternative to “Druzhba”. It is expected that with its help it would be possible to deliver oil to Europe bypassing the territory of Belarus.

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