Belarus, Russia fail to clinch oil-price deal, though supplies resume

Tuesday, 5 January 2010


Russia is the main ally and sponsor of Belarus but relations between the former Soviet neighbors have been increasingly strained by financial disputes
The dispute focuses on the Soviet era Druzba system that is the main pathway of Siberian petroleum to Europe.Russia began curbing supplies through the pipeline to Belarus ‘s domestic market after an oil-supply agreement between the two countries expired Dec 31.
Russia and Belarus had yet to clinch a new oil pricing agreement, altjough the tewo sides were in constant contact.
Until now, Belarus has received Russian crude at effectively subsidized prices, paying a crude oil tariff of about one third of what Moscow charged internationally.Belarus has used some of the oil domestically, then has refined and exported the rest at a heft profit.