Russia resumes oil supplies to Europe via Belarus

Russia has resumed pumping crude oil to Europe via Belarus, following a three-day halt in oil supplies to Europe.

Belarus had compensated for 79,000 metric tons (87,000 tons) of crude oil that it had illegally siphoned off Russia’s Druzhba pipeline, said Sergei Grigoriyev, Vice President of Russian pipeline monopoly Transneft. After that Transneft resumed pumping of oil through Belarus at 8:22 Moscow time (0522 GMT).

Alexei Kostyuchenko, General Director of Belarusian pipeline operator Gomeltransneft-Druzhba, reported earlier that Russian oil entered the Belarusian system at around 10:30 p.m. local time (2030GMT) on Wednesday.

The Druzhba pipeline takes Russian oil to Poland, Germany, Ukraine, Slovakia, the Czech Republic and Hungary.

The dispute between Russia and Belarus centered on Moscow’s decision last month to impose a duty of $180 per tonne on oil exports to Belarus, with Moscow complaining that the previous duty-free regime cost the Russian budget up to $4 billion a year in lost revenues.

In retaliation, Minsk imposed a $45 per tonne tax on Russian oil pumped across Belarus to Europe. On Monday, Russia stopped pumping oil to Europe via the Druzhba pipeline, accusing its neighbor of siphoning off oil, which halted Russian oil supplies to Europe.

Belarus cancelled the $45 per tonne duty on 10 January, following tense negotiations with Russia. According to Belarusian officials, a compromise was reached in a telephone conversation between Russian President Vladimir Putin and his Belarusian counterpart Alexander Lukashenko.

Andrei Sharonov, Russian Deputy Economy Minister, said Russia was satisfied with Minsk’s decision to cancel the duty. Sharonov said the Russian Economy Ministry was ready to discuss terms of oil transportation through Belarus.

Belarus imposed the $45 per tonne duty on 1 January 2007. Belarusian authorities said it was a response to Russia’s decision to impose customs duties on oil exports to Belarus on 8 December. On 6 January Belarus began siphoning off oil from the Druzhba pipeline, and Russia stopped pumping oil through the pipeline, which led to the suspension of its supplies to Poland, the Czech Republic, Slovakia, Hungary and Germany.

Meanwhile, EU Commission President Jose Manuel Barroso expressed Europe’s dissatisfaction with the supply dispute, branding it as "unacceptable" and urging the EU to develop a common energy policy.

(Source: www.rbc.ru)