Belarus Refinery Asks Higher Oil Tariffs From Russia To Make Up For Druzhba Incident

JSC Gomeltransneft Druzhba sent a letter to Transneft requesting the rise of oil tariffs by 21.7% from August to make up for the losses from the incident with polluted oil in the Druzhba pipeline.

In a corresponding letter dated 1 July the Belarusian company asks the Russian monopoly to agree on the growth of tariffs, Interfax.by reports.

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According to the Belarusian company, because of the stop of transit due to poor oil, it lost $23.7 million. The losses are calculated taking into account additional revenues from oil transportation in the reverse direction.

With the existing oil tariffs the reduction of the volumes of oil transit does not allow to ensure planned revenues to cover the operating costs and implement the technical re-equipment program in 2019, Gomeltransneft Druzhba stated.

Transneft was not immediately available for comment. Later, Reuters quoted the company as saying it wasn’t able to agree on the increase of tariffs.

Bad oil timeline

Problems with the quality of Russian oil started at the end of April. Belarus announced a “sharp deterioration” of the quality of the Russian oil transiting through the Druzhba pipeline on 19 April; the transit of oil to Europe was stopped on 24 April.

Russia has resumed the supply of quality oil to Belarus on 4 May. On 28 June, Gomeltransneft Druzhba reported the complete cleaning of the southern branch of the pipeline for the poor quality oil, having pumped 675,000 tons of it back to Russia.

Belarus plans to completely clear its oil pipeline system of dirty oil by mid-August.

Belarus and Russia haven’t yet agreed on compensations and their terms.

Source: TUT.BY