Belarus resists Russian oil terms, flows survive

Belarus on Friday accused Russia of applying “groundless and unacceptable” pressure during failed year-end talks to agree on oil prices and transit terms for 2010 and avert a new energy war that could cut supplies to Europe.

While Russian oil is still flowing without interruption to Belarus, the breakdown of talks on New Year’s Eve has raised concerns in Germany and Poland that supply disruptions seen in January 2007 could be repeated as the ex-Soviet states disagree.
The Belarussian government said higher prices proposed by Russia would breach the terms of a fledgling customs u-nion between the two countries and Kazakhstan. Minsk wants to continue receiving Russian oil tariff-free pending a new supply deal.

“Until such time as the documents are signed … duty-free oil supplies for the domestic consumption of the Republic of Belarus in January-February 2010 should be carried out in accordance with agreements reached earlier by our presidents,” it said in a statement.

The government said its delegation to Moscow was “put under unprecedented pressure, which, according to the Belarussian side, is totally groundless and unacceptable.”

Reuters