Belarus, Russia again fail to agree 2013 oil deliveries - source
MINSK. Nov 20 (Interfax) - A Belarusian delegation was in Moscow Monday and Tuesday for another round of negotiations with Russia over their oil balance for next year, but was unable to agree the expected oil import volume of 23 million tonnes, a source in government circles and close to the negotiations told Interfax.
"On November 19 and 20, a governmental delegation led by the republic's First Deputy Prime Minister Vladimir Semashko was in Moscow for negotiations over the oil balance for 2013. Representatives of the Russian Energy Ministry and government rejected a statement made earlier by Semashko about import volumes for 2013, and presented him a proposal in which the import volume is 18 million tonnes of oil," this source said.
"After this, the Belarusian delegation is returning to Minsk on Tuesday," the source said, but was unable to specify what steps Belarus will take next after receiving the turn-down by Russia.
What Russia is offering for next year is 3 tonnes less that Belarus will receive in 2012 and 5 tonnes less than the republic was requesting for next year, the source said.
Belarusian Prime Minister Mikhail Myasnikovich announced last week the reaching of agreement with Russia on oil deliveries in 2013, citing his talks with his Russian counterpart Dmitry Medvedev. On Friday, Semashko said at a press conference following a meeting with Russian Deputy Prime Minister Arkady Dvorkovich that agreement had been reached to the effect that Belarus would be importing 23 million tonnes of oil from Russia next year.
"Belarus agreed with Russia on the import of 23 million tonnes of oil in 2013," Semashko said. "In 2013, we agreed it will be 23 million tonnes, and heard no objections. I have grounds for saying that this figure will be 23 million tonnes," he said.
However, Dvorkovich rejected that statement on Monday, telling the press that Russia had not agreed to 23 million tonnes and that the negotiations continue.
Russian oil pipeline company OJSC Transneft has proposed reducing oil deliveries to Belarus by pipeline next year to 18% with the aim of increasing the load on the oil pipeline Baltic Pipeline System 2, which bypasses Belarusian territory. Transneft is also looking to increase transit oil through Belarus via the Druzhba pipeline to consumers in the West.
It was reported earlier that Russia believes Belarus, which increased imports of Russian oil products by 250% in the first half of 2012, exported gasoline to European markets under the guise of solvents. The export duty on solvents within the Customs Union is zero, while the duty on gasoline is 90% of the export duty on crude oil. Since August, Belarus bent to Russian pressure and halted the making and export of solvents, but Russia estimates damages of around $1 billion. The reduction in oil imports from Russia is also associated with a sharp increase in oil product imports from Russia to Belarus and the latter's non-fulfillment of its balance obligations to supply Russia with 5.8 million tonnes of oil products this year.
Since 2011, Belarus has been getting Russian oil duty-free, but the republic has to transfer to the Russian budget export duties it makes on oil products it refines from that oil and exports to non-Customs Union countries.
Independent observers in Minsk figure the collapse of the 2013 oil-balance negotiations suggest that Belarus will try to get these talks moved to a higher state level.
