Belarus Backwaters in Oil Duties Issue :: Charter'97 :: News

Belarus is ready to cancel duties for oil transit through the territory of the country, in case Russia would agree to lift customs duties for exported to Belarus. “The Belarusian side is ready for a constructive dialogue on settling problems of oil deliveries to Belarus, including lifting imposed compensatory measures in case the reasons that have fostered them would be abolished,” Belarusian government comments as quoted by Interfax.

In his turn, state secretary, deputy minister of Trade and Economic Development Andrei Sharonov, confirmed the last initiative of Minsk, NEWSru.com informs. As said by him, a letter from Belarusian prime minister Sergey Sidorsky had been received. Mr Sidorsky writes that Belarus is ready to send its representative to Moscow for negotiations on Russian oil transit terms on January 9. “Sidorsky is ready to arrive to Moscow on January 10,” Sharonov said.

The official underlined that Russia is not ready to agree on paying customs duty for oil transit through Belarus. “This duty cannot exist because of its economic nature, the way of its imposing and owing to bilateral agreements,” the state secretary, deputy minister said.

Belarusian Council of Ministers stated that “on December 8, 2006 Russian government ruled to impose export duty for crude since January 1, 2007 unilaterally, without preliminary notice”. Thus, as Belarus believes, a number of bilateral and international agreements on non-collection of duties in bilateral trade have been violated”.

The Belarusian government notes that the actions of the Russian side “have destroyed the established trade connections and notably deteriorated the economic conditions of oil refining industry of Belarus”. “In this situation Belarusian government had to take steps to prevent further economic loss to Belarus and a shortage of fuel and energy,” the document explains.

The Belarusian government introduced customs clearance for oil transported through Belarus oil trunk pipelines without collecting customs processing fee, unlike in Russia.

“A special tax introduced by the decree of the Council of Ministers on December 31, 2006 is paid for oil transportation and is not a customs duty,” the comment adds.

The cabinet said that Belarus is the owner of all oil pipelines running through its territory and has the right to charge the transit fee.

Minsk decided to introduce a duty of $45 per ton on Russian oil that transits Belarus` territory to offset the losses that the country is likely to suffer after the Russian government last month imposed an export duty on crude oil supplied to Belarusian refineries.

Photo by NTV