Moscow stops oil exports to Belarus as nasty price dispute escalates
MOSCOW — Russia on Jan. 8 halted oil exports to Belarus amid a bitter trade dispute between MoscowandMinsk,cuttingoffsupplies to several European countries and highlighting concerns over Russia’s reliability as an energy supplier.
Accusing Belarus of stealing oil headed for Europe, Russia suspended exports via the Druzhba (“Friendship”) pipeline, halting supplies to several countries, including Germany and Poland.
Authorities in Belarus said oil was taken as a form of transit payment imposed on Jan. 1 that Moscow has refused to pay.
The halt in oil exports comes a year after Russia cut off supplies of natural gas to Ukraine because of aprice dispute, disrupting supplies to parts of Europe during a chilly January 2006.
The oil cutoff is unlikely to cause a repeat of last year’s panic over gas supplies because European refineries typically carry several months of inventory.
Nevertheless, the cutoff renewed concerns over Russia’s willingness to use its vast oil and gas exports as a political weapon.
It marked a major escalation of a crisis in relations between Russia and Belarus, a country long considered one of Moscow’s closest allies.
“Belarus has cast caution to the wind by starting to take oil because Russia is not paying a duty it illegally imposed. This looks like a trade war,” Andrei Sharonov, Russia’s deputy economic development minister, told Ekho Moskvy radio.
He warned Russia was ready to take economic steps against its neighbor: “One must not forget that Russia is the biggest market and No. 1 economic partner for Belarus. Therefore, we have the possibilities to apply measures to Belarus.”
Russian pipeline monopoly, Transneft, said in a statement that it had been forced to act after Belarus “began tapping oil destined only for customers in Western Europe from the Druzhba pipeline unilaterally, without any warning.”
The company said Belarus had siphoned off 79,000 metric tons of oil since Jan. 6.
Belarus insisted it was not to blame for the crisis and was acting legitimately.
“The Belarusian side is not at fault for the drop in pressure at the entrance of the Druzhba oil pipeline,” Foreign Ministry spokesman Andrei Popov said. “Belarus was forced to take measures to avoid economic damage and a shortage of vital fuel and energy resources.”
ABelarusian delegation headed to Moscow on Jan. 8 for urgent talks.
German Economy Minister Michael Glos said reserves would guarantee oil supplies even in the event of lengthy disruptions.
But he also said the incident demonstrated that “one-sided dependencies must not be allowed to develop.”
Europe is heavily dependent on energy supplies from Russia, the world’s second-largest oil exporter after Saudi Arabia.
The 2,500-mile-long Druzhba pipeline, built in the 1960s to tie then-communist Eastern Europe to Soviet energy supplies, carries 18 million metric tons of oil to Poland each year and 22 million metric tons to Germany, or one-fifth of its oil imports.
The pipeline has a southern branch that supplies oil to Ukraine, Hungary, Slovakia and the Czech Republic.