Belarus increasing oil transit tariffs may lead to lower revenues from pipelines

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October 10, 2016 11:06

According to the Antimonopoly Ministry’s regulation No 30 of September 28, 2016, as of October 8th, 2016, Belarus increased oil transit tariffs by 50%. Such tariffs are regulated by intergovernmental agreements. Belarus has increased the tariffs not so much due to the devaluation but due to the need to step up her positions in oil and gas talks with Russia. Belarus may revoke the increase if a compromise with Russia is achieved. Meanwhile, Russia may partially redirect oil transit through own ports in the coming years, which means that pipelines’ revenues would shrink and the pressure on Belarus would increase in terms of exporting Belarusian oil products through Russian ports. If Belarus manages to preserve high tariffs until 2016, her additional revenues could total USD 20 million. That said, Kazakhstan and some Russian mining companies might stop transporting oil through Belarus, which, in turn, could lead to proceeds falling by at least USD 50 million a year.

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