Belarus has proposed a 25% increase to the tariff that it charges to Russia for the transit of oil to Europe, raising the stakes in oil supply negotiations that are already complicated by ongoing political upheaval in Minsk, Reuters has reported three oil sources as saying.
Sergey Lavrov & Alexander Lukashenko, Minsk, May 2018
Russia's Foreign Minister Sergey Lavrov meeting with President of Belarus Alexander Lukashenko in Minsk, in May 2018. Photo: MFA Russia / Flickr
Discussions between Moscow and Minsk to reach a deal on annual Russian oil sales to Belarus are still ongoing. The issue has been a source of contention between the two in the past and led to disrupted oil flows.
In January, negotiations between the two reached a stalemate and Russia halted oil sales to Belarus, although there was no disruption of onward flows to Europe.
Following lengthy talks, the issue was eventually resolved, but not before Belarusian President Alexander Lukashenko met with US Secretary of State Mike Pompeo to discuss replacing the lost Russian oil with oil from the US.
Read more: Pompeo offers to supply Belarus with 100% of its oil & gas
Reuters reported its oil sources as saying that Belneftekhim, the Belarusian state-owned energy company, had notified Transneft that, from January 1, it wanted a 25% increase to the transit fee through its Druzhba pipeline for Russian suppliers. This was far higher than any increase envisaged by Moscow.
Russian and Belarusian government officials are expected to meet next week to discuss oil supply terms for the next year, according to those sources.
The Russian Foreign Ministry has said that Moscow’s top diplomat, Sergei Lavrov, plans to hold a working visit to Belarus on Wednesday and Thursday when a meeting with President Lukashenko could also be on the agenda.
The negotiations are taking place to a backdrop of continued protests on the streets of Minsk following the presidential election on August 9 in which Lukashenko claimed victory, though the opposition has said was rigged. The authorities have denied the accusation.
Moscow has been a long-term supporter of the Lukashenko regime, with the country being seen as an important buffer state between Russia and the EU. Earlier this year, Russian President Vladimir Putin agreed to a loan of $1.5 billion to provide much-needed support during a political crisis made worse by the pandemic.
The oil negotiations have been further hampered by other ongoing unresolved issues between the two nations, including the sale of natural gas as well as Russian compensation for contaminated oil supplies.
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