Eurasian Integration Yearbook 2012

2011: Data and ReviewsECONOMIC SECTORSOil and GasBelarusBelarus raises tariffs for transit of Russian oilJanuary 11, 2011Belarus will increase tariffs for the transit of Russian oil to Europe by 12.5%from February 1, the Belarus Ministry of Economy said. The decision was takenunder an agreement between Belarus and Russia on setting tariffs on oil-producttransportation via the trunk pipelines of Belarus.From February 1, tariffs on oil transported through the Gomeltransneft Druzhbaand Polotsktransneft Druzhba pipelines in Belarus will also increase by 12.5%compared to 2010.According to the Belarusian Ministry of Economy, the tariff increase wasnecessitated by a change in economic conditions surrounding oil supplied byRussia and transported through oil pipelines in Belarus.Problems with Russian oil supplies to BelarusJanuary 21, 2011Finam.ru, RBK dailyIn December 2010 the Presidents of Russia and Belarus, Dmitry Medvedev andAlexander Lukashenko, agreed that all export duties on Russian oil processedin Belarus would be transferred in full to the Russian budget. In turn, Moscowwould supply oil to Belarus duty-free (the amount planned for 2011 was set at21.7 million tonnes). These arrangements are valid under the Single EconomicSpace between Russia, Belarus and Kazakhstan.However, Russian oil companies cut off oil supplies to Belarus on January 1,2011 citing an absence of contracts for the year. To protect the profitabilityof oil deliveries to Belarus and other countries, the Russian oil companiesintended to increase the price of oil supplied to Belarus by $45 per tonne.Belarus’ protest over this increase has led to nearly a month of negotiationswhile both sides tried to reach a solution. Crude reserves at Belarusian refinerieshave been gradually decreasing, their operations were threatened, and Russiahas been redirecting oil meant for Belarus to the Russian ports of Primorsk andNovorossiysk, Gdansk in Poland, and to Russian and Ukrainian oil refineries.The largest deliveries of oil were due to be supplied to Belarus during the firstquarter of 2011 by LUKOIL (1 million tonnes), Surgutneftegaz (1 million tonnes)and Rosneft (0.9 million tonnes).260 EDB Eurasian Integration Yearbook 2012