Belarus Russia Oil Agreement

Russia and Belarus have reached a provisional agreement on limited oil deliveries. After months of talks, Moscow agreed to abandon supplier bonuses. Both countries rallied on crude flows after a historic collapse in oil prices. “The Heads of Government noted that agreements in principle on the parameters of cooperation in the oil sector have been reached taking into account the mutual interests of the parties. The implementation of these agreements will guarantee the supply of Russian oil refineries to Belarusian oil refineries in full and under the agreed terms,” the Russian government said in the statement. Oil managers say they have reached an agreement on resuming deliveries of Russian crude oil to Belarus after a reduction in transit duties on January 1. Belarus has agreed to give up a supplier`s premium on oil it imports from its much larger neighbor, Belneftekhim of Belarus said in a statement on January 4. The deal was expected to allow for the continued operation of Belarusian refineries in January, they said. “Today, documents are being made with a Russian company to pump the first batch of oil purchased at a price without premium,” Belneftekhim`s statement reads. The shutdown of Russian oil supplies did not affect oil to Europe, but could have brought a wall to Belarus, which depends on Russia for more than 80% of its energy.

Russian Prime Minister Dmitry Medvedev and Belarusian Prime Minister Syarhey Rumas reportedly spoke by phone on 4 January to try to break the deadlock. Belarus relies heavily on Russia for fuel and cash and is an important transit route for Russian energy supplies to Europe. Hours before the December 31 deadline, Russia and Belarus reached a two-month agreement on natural gas prices, which could have meant a gas shutdown earlier this year. Minsk has for some time been at odds with Moscow over oil transit prices, amid growing pressure from President Vladimir Putin on Belarusian President Alyaksandr Lukashenko to deepen integration between the two countries. In recent weeks, Belarusians have protested against the strengthening of relations with Russia and the perceived secrecy of the discussions that followed a 1999 one-state agreement. The warning comes amid a price dispute between the two former Soviet republics, with Russian producers limiting the neighboring country`s crude oil supply this year. A Kremlin official said last week that the Russian government cannot force oil companies to deliver crude oil to Belarus at prices lower than they are willing to offer. The Russian-Belarusian energy conflict began when Russian gas supplier Gazprom demanded an increase in gas prices paid by Belarus, a country closely allied with Moscow and which forms a laid-back eu state with Russia. It escalated on 8 January 2007, when Russia`s state-owned gas pipeline company Transneft stopped injecting oil into the Drusshba oil pipeline through Belarus because Belarus siphoned oil off the line without mutual agreement. [1] [2] On 10 January, Transneft resumed oil exports through the pipeline after Belarus ended the customs that caused the shutdown, despite various communications from the parties on the state of negotiations. [3] [4] Separately.

. . .

Comments are closed.