Reduction in railway tariffs by Russian Railways will not affect short-term logistics of petroleum products

As of October 19^th, 2016, Russian Railways introduced a 25% discount on the transit of oil from Barbarov and Navapolatsk to the ports in the north-west of Russia until December 31^st, 2018. The discount would increase competition for Belarusian freights and reduce the flow of goods to the Baltic ports. In response, Lithuanian and Latvian railways are likely to offer discounts too. Russian companies may redirect part of their flows, however, a complete reorientation of oil cargo to the ports of Russia is unlikely. In the short-term, Belarusian oil products are likely to be shipped via the Baltic ports. The shipment via Russian ports requires building of supply chains and solving all the issues of shipping and cargo handling in the Russian ports.