Belarus asks Russia to abandon oil duties to the end of 2017
MINSK. Oct 3 (Interfax) - Belarus has suggested Russia fully abandon charging Belarus export duties on petroleum products right through to the end of 2017 in compensation for losses it will face from Russia's tax maneuver, EurAsEC board member, Sergei Rumas, said.
"We have proposed a mechanism that envisages Russia fully rejecting export duties for petroleum products made from Russian oil right up until the end of 2017, until the upgrade of our refineries is complete," Rumas said in the Belarusian parliament Friday.
Belarusian Prime Minister Mikhail Myasnikovich said Thursday in a report to President Alexander Lukashenko that Belarus has asked Russia let it keep all export duties from products produced from Russian oil from 2015 to compensate for tax maneuver losses.
Rumas said that by 2018, Belarusian refineries will be able to complete key upgrade projects and achieve European depth of refining standards.
"I cannot say that this decision [about rejecting duties] has been supported by Russia. Russian experts say there is a loss [to the Belarusian economy from the tax maneuver], but a final decision has not been made yet," Rumas said.
The Russian and Belarusian Foreign Ministries have checked their calculations on the amount of losses that the Belarusian budget will face. "The Foreign Ministries checked the losses, which are a little higher than what has been mentioned in the press. Because the impact of the tax maneuver on the oil and petroleum products market, taking into account the small volume of our own production, is significant. The sides checked these figures, there are no differences there," he said.
Rumas said he hoped that this issue would be resolved before the three heads of state met in Minsk.
The EurAsEC representative for Belarus said he was counting on Russia settling this issue. "[That way] we will not have to cut our budget. $1 billion for Belarus is a big amount and the government will suggest several options to compensate for this loss," he said.
Rumas said there is still an agreement between Russia and Belarus that $1.5 billion in oil duties will remain in the Belarusian budget in 2015. Belarus is counting on this money to meet its foreign debt payments. "Part of these duties to the tune of $1.5 billion will stay in our budget, the tax maneuver is a new subject, which has hit Belarus hard," he said.
The Belarusian Council of Ministers in principle approved the 2015 budget draft, which does not contain losses from the Russian tax maneuver, on Friday, he said.