Frenemies? Russia may sue Belarus for raising oil transportation tariffs

‘Druzhba’ (Friendship), picture by Russian artist Vasya Lozhkin

Belarus has technically breached the procedure of setting oil transportation tariffs, Russia’s Deputy Energy Ministry Kirill Molodtsov told reporters on the sidelines of the St. Petersburg International Gas Forum.

“The procedure was violated in the legal sense,” he said, when commenting on Belarus decision to raise the tariff on transportation of Russian oil in its territory.

On 11 October Belarus will raise tariffs on oil transportation on ‘Gomeltransoil Druzhba’ and ‘Polotsktransneft’ oil mains. According to the decree of Belarus’ Ministry of Antimonopoly Regulation and Trade dated September 28, 2016, raises tariffs on transit of Russian oil through the territory of the republic by an average of 50%. The document comes into force on October 11, 2016.

Earlier, a representative of Russian oil transportation company Transneft Igor Demin said that neither Gomeltransneft Druzhba nor Polotsktransneft Druzhba companies did not notify the Russian company about unscheduled increase of tariffs for the transit of Russian oil. Transneft informed Russia’s Federal Antimonopoly Service (FAS) of the current sutiation.

The agency called the tariff increase by Belarus ‘unthinkable’. Belarus’ actions may lead to litigation, FAS’ Dmitry Makhonin stressed., following TASS

Tags: oil Russia

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