In an interesting development, Belarus hits back at Russia by slamming huge taxes on Russian oil transported through its pipeline to European countries. The decision was taken after three days when Belarus halfheartedly agreed to demands by the Russian state energy giant Gazprom to double its gas prices. The Belarusian authorities have decided to charge $45 per tonne of oil flowing through its pipeline network.
The recent development is unlikely to influence global oil prices however; certainly it raises risks of short term oil disruption to refineries of European countries such as Germany and Poland. Russia exports around one fifth of its total oil export to the tune of one billion barrels every day through Belarus. On the other hand, in the wake of increased prices European countries could start searching for cheaper supplies, which may disrupt the supply chain.
This is now evidently clear that with the tit-for-tat tax move Belarus seems to be ready to lock horns with Russian authorities following a spate of economic disputes between the countries. Just three days back Belarus had to uncomfortably agree to double the gas prices for Russian gas, when Russian authorities threatened to cut off supplies.
In the meanwhile, Russia seems to be unmoved with this decision saying Belarusian authorities could not legally impose a new tax on oil transportation. Russian oil pipeline Transneft is of the view that Belarus cannot impose any export or additional transit duty since oil belongs to Russia. The current transit shipping fee has been set by inter-governmental agreement; therefore Belarus cannot change the tax structure without confirmation of Russian authorities.
