Russian, Belarusian vice-prime ministers to discuss oil supply terms

MOSCOW, January 9 (Itar-Tass) -- The third round of talks between
Russia and Belarus on the terms of Russian oil supplies in 2010 will begin
in Moscow on Saturday, January 9.
After the previous consultations on January 6-7, Minsk has decided to
reinforce its team and take the talks to a higher level. The Belarusian
delegation will be led by First Vice Prime Minister Alexander Semashko.
Vice Prime Minister Igor Sechin is expected to head the Russian
delegation.
This basically means that the two parties have agreed key provisions
of a new agreement.
The Belarusian premier's press secretary Alexander Timoshenko told
Itar-Tass earlier that "if the experts agree the final version of the
protocol, First Vice Prime Minister Alexander Semashko will be prepared to
fly to Moscow to sign the documents."
During the previous two rounds of talks the Russian and Belarusan
experts failed to approve a protocol on amendments to the
inter-governmental agreement on oil supplies of January 12, 2007.
Russia and Belarus did not sign a new oil supply agreement before the
end of 2009. As a result, Russia has decided to supply about six million
tonnes of crude to Belarus from January 2010 duty-free, and apply the
standard Russian export duty to the rest of supplies, abolishing the
downward coefficient of 0.356 that was in effect in 2009.
Belarus cut the crude export duty from 271 U.S. dollars per one tonne
to 267 U.S. dollars, a government representative said on January 5.
The rate was adjusted to the one established in Russia on January 1,
2010, he said.
Belarusian export duties on petroleum products were also levelled with
those in effect in Russia. From January 1, 2010, Belarus charges 192.2
U.S. dollars instead of 194.2 U.S. dollars per one tonne of light
petroleum products and 103.5 U.S. dollars instead of 105 U.S. dollars per
one tonne of heavy petroleum products.
The government said the decision was based on the Belarusian-Russian
agreements on cooperation in crude and petroleum product exports in
2007-2009.
"Before New Year, we paid for the amount of crude necessary for the
smooth supply of crude through the Belarusian pipeline. Thus, supplies of
the first eleven or twelve days of this year are prepaid, and the delivery
to the Belarusian oil refinery is continuous," Sergei Ostapets from the
Belneftekhim concern said. "In particular, the contract regulates
duty-free supplies. As the final price of January deliveries will be set
in early February, we can say the current delivery is duty-free."
"Russian crude is coming to Belarus, and there are no violations of
law. We keep with the existent documents," he said.
Crude is transported through Belarus in the agreed amount. "The
transit amount corresponds to the plans coordinated with Transneft in late
December. Not a single tonne is kept here," he noted.
On Monday, Russian Prime Minister Vladimir Putin urged Sechin to
promptly coordinate the conditions of hydrocarbon supplies to Belarus.
He expressed hope that "the talks on this issue will be completed
soon".
Sechin said, "Already yesterday Russia began duty-free supplies of
hydrocarbons to the Belarus, Novopolotsk and Mozyr refineries :
Hydrocarbon supplies to European consumers also proceed without failure."
He reiterated that "earlier, hydrocarbons were supplied to Belarus at
a discount, but as of January 1, 2010, the discount was no longer
effective since the agreement has expired."
"However, taking into account an exclusive attitude to Belarus Russia
has offered to continue preferential supplies in the amounts necessary for
domestic consumption," Sechin said, explaining that the volume of exports
would reach six million tonnes. "Russia handed over its proposals, but we
still have no signed documents. The talks continue between the energy
ministers of Russia and Belarus."
Russia's government hoped to sign a new agreement on oil supplies to
Belarus before December 31 and to supply duty-free oil for Belarus'
internal consumption. Russia also proposed to provide other exports that
run through Belarussian territory with the full payment of customs duties.
Earlier, Sechin described this step as "an unprecedented proposal."
"It is aimed at synchronising the operation of Russian and Belarussian
enterprises. They will operate on similar conditions," he said.

-0-zak/