Belarus' main energy supplier, Russia, announced Tuesday the imposition of an oil export duty for Belarus, with which Russia is working to create a political and economic union, at $180.70 per metric ton as of January 2007.
"We have the 1992 free trade zone agreement, decisions of the Supreme State Council [of the Russia-Belarus Union State] and the treaty to form the Union State, which rule out customs tariffs for internal use [within the union]," said Vasily Khrol, a deputy state secretary of the Russia-Belarus Union State.
The two countries have been working to create the Union State since 1997, which envisions a common economic, customs and political space, but talks stalled recently over a host of issues, including energy prices.
"I am sure that it [the decision] will not be implemented or will be revoked," the official said.
Russia has sought to prevent losses being inflicted on its budget from crude deliveries to its ex-Soviet neighbor. Belarus refines oil and re-exports it to third countries, paying no taxes to the Russian budget.
Russian officials said the volume of crude supplied to Belarus significantly exceeds the country's domestic needs, encouraging re-exports.
The introduction of tariffs is a follow up to Moscow's move to raise nearly four-fold the gas price for Belarus as of 2007. The country currently pays the lowest post-Soviet rate of about $50 per 1,000 cubic meters.
The move, which would affect the struggling Belarusian economy, prompted bitter remarks by President Alexander Lukashenko, who said Belarus and Russia, as members of the Union State, should enjoy similar energy prices.
Russian energy giant Gazprom has offered to partially compensate Minsk for the price hike if Belarus' Beltransgaz were to sell it its main gas pipelines, which pump Russian gas to Europe.
The countries are reportedly considering joint ventures to run the pipelines.
Speaking on the sidelines of a summit of post-Soviet leaders in Belarus' capital Minsk in November, Russian President Vladimir Putin said: "Gazprom and Beltransgaz will set up joint ventures on a parity basis."
Russia exported 19.3 million tons of crude (141.86 million barrels) and 20.2 billion cubic meters of natural gas to the country in 2005. Supplies this year are expected to exceed the 2005 figures.
