The Customs Union between Russia, Belarus and Kazakhstan will most likely fail to agree on common export duties for oil and cars by July 1, the chairman of the Belarus State Customs Committee said on Wednesday.
The Customs Union's code was due to start operating on July 1, but last week Russian Prime Minister Vladimir Putin said the premiers of the three former Soviet republics had failed to resolve disputes at a meeting in St. Petersburg.
"The major problem is export customs duties for oil and petroleum products as well as passenger cars for individuals," Alexander Shpilevsky said, adding that Russia has a tough stance on these issues, which differs from the positions of Belarus and Kazakhstan.
The Customs Union formally came into existence on January 1, but is unable to function until the Customs code is approved.
Putin said the negotiation process would be continued by experts over the next two weeks.
The main areas of contention are the import of foreign cars and aircraft into the Union's customs territory and export duties on Russian oil and petroleum products to Belarus.
Belarusian Prime Minister Sergei Sidorsky clarified that it was duties on oil and petroleum products that troubled his country. Moscow and Minsk faced off at the start of the year over tariffs on imports of Russian oil, which Belarus said should be completely duty-free in the Customs Union.
According to Russia's Federal Customs Service head, Andrei Belyaninov, the issue should be solved by the government heads or by the presidents of the three nations, adding that consultations were scheduled for May 28 and could involve the prime ministers or presidents.
Earlier this week, Vedomosti business daily reported that the Customs Union could begin operations without Belarus.
"I wouldn't want to leave [Belarus] out just because of an issue over cars," Belyaninov said.
MINSK, May 26 (RIA Novosti)
