Belarus has imposed an environmental tax on oil transportation

Belarus introduced an environmental tax on transportation of oil and petroleum products through main pipelines – 50% of the profits of the companies. This was reported by the Belarusian Telegraph Agency, citing the press-service of the President of the country Alexander Lukashenko.

the money will be a source of funds for the mitigation of possible environmental impacts in case of accidents on the main oil pipeline and other contingencies related to the transportation of oil and oil products.

In 2018, the total profit of the Belarusian operators of pipelines “Gomeltransneft Friendship” and “Polotsktransneft Friendship” (in 2019 merged with the “Gomeltransneft Druzhba”, owned by “the company”) amounted to 233,7 million Belarusian rubles (11 January, the Central Bank set the official rate of the Belarusian ruble 28,9 rbl.). Thus, the amount of paid environmental taxes could amount to about 3.4 billion rubles.

Belarus may try to use the introduction of a new tax to raise tariffs for the transit of Russian oil, says a senior Director of the division of corporations, Fitch Dmitry marinchenko: “an Additional tax will not exceed a few tens of millions of dollars is not much for the Russian oil industry, but even it still needs to somehow “hang” on the oil companies”.

In 2020 Belarus planned 16.6% increase in the tariffs for pumping Russian oil through oil pipelines, reported in December 2019, the Federal Antimonopoly service (FAS). Belarus against the proposed increase in tariffs were “Transneft”. “[The proposed increase] significantly above the expected values after the tariff increase in the summer and not confirmed by the calculations,” – said the adviser to the President of “Transneft” Igor Demin (quoted by “Interfax”). If the transport companies of the countries do not reach an agreement, the tariff authorities in both countries dmust index the tariffs until 15 January 2020 3.8–6.8 percent, believed the FAS. The service representative reported that the meeting for the approval of tariffs by 2020, scheduled for January 13.

Belarus proposed to raise the rate by 21.7% to compensate for the loss of “Gomeltransneft Friendship” from-for hits in Belarusian trunk pipeline system contaminated Russian oil. But the Russian side has agreed to raise fares only by 3.7% from 1 September 2019

Belarus agreed to purchase Russian oil without a premium to the price we are talking about the supplies required for continuous operation of the Belarusian oil refineries in January on Business

From 1 January 2020, the Russian company has stopped the supply of oil to Belarus. They are unable to enter into contracts with the state “Belneftekhim” due to disagreements in price. The last few years Belarusian refineries (refinery) to buy oil on terms comparable to the terms for the Russian independent refineries, i.e. export alternative plus a small premium. The Russian company proposed to maintain these conditions without losing them.

Belarusian side insisted on the cancellation of the award and succeeded. January 4, delivery resumed in these conditions. Supply raw materials of the oil company “RussNeft” and Neftisa group “Safmar” Mikhail Gutseriev. A person familiar with the negotiations, told “Vedomosti” that in January, they plan to put in the Republic of 650,000 tonnes of raw materials by pipeline and 100,000 t – rail.

it is Unlikely that the introduction of the environmental tax in the negotiation period is a mere coincidence, believes marinchenko: “Thus Minsk is trying to improve its negotiating position and partially compensate for lost income from the processing of Russian oil.”

“statements” are waiting for comments from representatives of “Transneft”, “Belneftekhim”, The Ministry of Antimonopoly regulation and trade of Belarus and the Ministry of energy.