Trade Resources Industry Views Russia Has Agreed to Ship 23 Million Mt of Crude to Belarus This Year

Russia Has Agreed to Ship 23 Million Mt of Crude to Belarus This Year

Russia has agreed to ship 23 million mt of crude to Belarus this year, a spokeswoman for the Russian Energy Ministry said Friday.

Russia is planning to ship 21 million mt by pipeline and a further 2 million mt by rail this year, the spokeswoman said.

Belarusian officials said previously that they were hoping to receive 23 million mt of crude this year, but Russian officials had indicated that 21 million mt was a more realistic total.

In December, the two countries said they had agreed on deliveries of 11.5 million mt for the first half of this year, similar volumes to those shipped in the same period last year.

Russia supplies crude to Belarus and receives oil products in return under a deal covering 2012 to 2015.

Initially, supplies were agreed on an annual basis, but in mid-2012, Russia insisted on switching to quarterly agreements after accusing Belarus of exporting oil products labeled as solvents to avoid paying export duty. As part of the agreement on a tax-free zone, since January 2013, Belarus receives duty-free crude from Russia, but pays duty on any oil products exported on to the West. Solvents are exempt from the export duties.

Tensions were further exacerbated in September when a potash trading partnership between the two countries collapsed and Russia temporarily reduced supply volumes.

Source: http://news.chemnet.com/Chemical-News/detail-2294867.html
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Russia Agrees to Ship 23 Million Mt of Crude to Belarus in 2014
Topics: Chemicals