Page 8 - FSUOGM Week 04 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Source: IEA.

Belarus, Russia still at odds

over oil transit tariffs

BELARUS BELARUS and Russia are still odds over tariffs Minsk argues that the tariff increase is justi-
for the transit of Russian oil through Belarusian fied as Russia has reduced transit volumes con-
Belarus is seeking a territory. siderably, leading to a RUB3.5bn ($47mn) drop
25% hike in oil transit The tariff will increase by 6.7% on February in income. The coronavirus (COVID-19) pan-
tariffs. 1, sources have told Russia’s Kommersant news- demic has sapped fuel demand in Europe and in
paper, following an agreement between the two turn oil usage at its refineries.
countries’ regulators. But this is only a temporary Russia also made an unprecedented cut to
solution and a new formula needs to be agreed its oil production last May as part of a deal with
at an intergovernmental level, according to the Saudi Arabia and other members of the OPEC+
newspaper. alliance.
Belarus proposed a 25% hike in tariffs last Russia halted oil supplies altogether to Bela-
November, further complicating a protracted rus at the start of 2020, forcing Belarus to resort
dispute with Russia over oil and gas supply to higher-priced deliveries from Azerbaijan,
terms. According to Reuters, Belarusian state Norway, Saudi Arabia and the US. But the pair
energy company Belneftekhim told Russian have now resolved most of their disputes in the
pipeline operator Transneft that it wanted to energy sector, after Belarusian President Alexan-
raise the tariff by nearly 25% on January 1, 2021. der Lukashenko had to reach out to Moscow for
Both the northern and part of the southern support during mass protests over his re-election
branches of Russia’s Druzhba export system last summer. Belarus subsequently settled its gas
pass through Belarus, delivering supplies to the debts with Russia’s Gazprom.
Czech Republic, Germany, Hungary, Poland and Belarus said earlier this month it had secured
Slovakia. Druzhba also ships up to 25mn tonnes favourable terms for Russian oil and gas sup-
per year (500,000 barrels per day) of crude to plies in 2021. But it also clinched a new deal this
Belarusian refineries. month to obtain supplies from Azerbaijan. ™

P8 www. NEWSBASE .com Week 04 27•January•2021