Russia-Belarus Oil Blockade Ends (11/01/2007)

Πεμ, 11 Ιανουαρίου 2007 - 10:08
Russia has resumed pumping crude oil to Europe via Belarus, according to Russian pipeline operator Transneft, BBC reports on Thursday. Sergei Grigoriyev, vice president of the state-run firm, said oil flows to Germany and several East European countries had begun again at 0530 GMT. The move followed a three-day halt in supplies through Russia's key Druzhba pipeline, which passes through Belarus. Russia cut off supplies to Belarus on Monday, claiming Minsk had been illegally siphoning off oil. The dispute between the two former Soviet countries came after Moscow forced Belarus to accept a major increase in the cost of gas supplies to the country in late December. Russia later imposed a hefty duty on oil exports to Belarus, claiming its neighbour was costing it up to $4bn in lost revenues each year. In retaliation, Belarus slapped a $45-per-tonne transit tax on oil shipments from Russia, but withdrew it earlier on Wednesday after tense top-level government talks between both sides. Russia had refused to pay the Belarusian tax, and demanded it be cancelled in order for oil supplies through the pipeline to begin again. At its height, the dispute hit Russian oil supplies to Germany, Poland, Ukraine and other Eastern European countries via the Druzhba pipeline. 'Destroyed trust' Speaking on Thursday, Mr Grigoriyev said Russian oil was once again "flowing through the Druzhba pipeline to Europe". His comments came after Alexei Kostuchenko, the general director of Belarusian pipeline operator Gomeltransneft Druzhba, said Belarus had started transit shipments of crude through the pipeline at 2035 GMT on Wednesday. The move by Russia to cut off supplies via the Druzhba pipeline - whose name roughly translates as friendship - brought about widespread criticism across Europe. International Energy Agency boss Claude Mandil said the move undermined faith in Russia as an oil exporter. EU energy commissioner Andris Piebalgs said the EU was keen to keep using Russian oil, but sought reassurance that oil would not be cut off again. German Chancellor and current European Union president Angela Merkel denounced the pipeline closure as unacceptable and one that "destroyed trust" in Russia as an energy supplier. The 2,500-mile-long pipeline has the capacity to ship more than 1.2 million barrels a day to eastern and central Europe and typically works at close to full capacity. (BBC News, 11/01/2007)