Russia to reduce oil supplies to Belarus

Belarus will not have enough raw oil to produce petrol for further smuggling.

Russia also decided to set equal export duties on petrol and solvents.

Petroleum Information Agency (PIA) received this information from Russian deputy minister of energy Anatoly Yanovsky, Interfax reports.

"A decision has been taken. We have an appropriate instruction of vice minister Dvorkovich. The issue will soon be proposed for consideration to the Eurasian Economic Commission," he said.

Russia's ministries consider a possibility of raising duties on solvents to the level of petrol export duties in the Customs Union.

Russia thinks Belarus increased purchases of Russian oil and exported petrol under guise of solvents to European markets. The Customs Union allows duty-free solvents exports, while petrol export duty amounts to 90% of the oil export duty. This scheme caused significant losses in the budget of Russia. The damage may be estimated at $2 billion in 2012.