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Russian economics ministry demands Belarus abolish oil transit duty

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The ambassador of Belarus in Russia has been given a note proposing that Belarus immediately abolish a $45 transit duty on Russian oil, a deputy Russian economics minister said Saturday.
MOSCOW, January 6 (RIA Novosti) - The ambassador of Belarus in Russia has been given a note proposing that Belarus immediately abolish a $45 transit duty on Russian oil, a deputy Russian economics minister said Saturday.

Andrei Sharonov also did not rule out "adequate measures" taken against Belarus if the country, with which Russia is building a union state, fails to fulfill Russia's demands.

Belarus's state oil company Belneftekhim said Thursday it has officially notified Russian pipeline monopoly Transneft of imposing a transit duty of $45 per metric ton of Russian oil from January 1.

Moscow more than doubled the price for its natural gas from January 1, 2007 supplied to the 10-million nation to $100 per 1,000 cu m from $46.7 in its move to gradually make all former Soviet republics pay market prices for energy supplies, and also imposed a $180.7 oil export duty for Belarus.

Russia's Economic Development and Trade Ministry said Thursday Belarus's move is out of line with bilateral trade and economic agreements.

"The measures were taken by the Belarusian side without consultations with the Russian side, and... contradict the trade and economic agreements between Russia and Belarus," the ministry said.

The ministry said duties can be imposed only on goods produced or consumed in the country imposing a duty, adding that under an agreement between Russia and Belarus dated 1992, each side should provide free transit of goods from the customs territory of the other country.

A source in the Russian government told journalists that the Belarusian move to impose the duty on January 3, but effective from January 1 meant disregard for civilized trade rules accepted worldwide.

Belarus is the transit route for about 20% of Russian oil exports to Europe.

Belarus's Foreign Ministry said Thursday the transit duty on Russian oil does not mean oil supplies to third countries will be restricted.

"The introduction of the duty is a reciprocal measure of the Belarusian side following the Russian government's earlier decision to use export duties on oil brought into the [Belarusian] republic," a ministry spokesman said.

During the recent gas spat, Belarus said it was ready to pay $75 per 1,000 cu m of Russian natural gas, but had to agree to $100 two minutes before the New Year. Russian energy giant Gazprom also agreed to buy out 50% of Belarusian gas pipeline operator Beltransgaz shares for $2.5 billion within the next four years, although Gazprom earlier said the Belarusian pipeline company was worth $3.3 billion instead of $5 billion assessment by Belarus.

The conclusion of the gas deal alleviated the European Union's concerns about likely disruptions in gas supplies to Europe in case the Russia-Belarus contract was not signed.

The dispute with Belarus was reminiscent of a gas spat with Ukraine early last year when Russia briefly suspended gas supplies, affecting consumers in Europe as Ukraine started siphoning Russian gas transited through its territory and intended for European countries.

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