Russia’s key ally to hike rates for oil transit to EU

Russia

Transit of Russian oil through Belarus will become more costly next year, the Kommersant business daily reported on Saturday, citing Russian energy export giant Transneft.

According to the report, the Belarusian operator of the Druzhba pipeline, Gomeltransneft Druzhba, has reached an agreement with Transneft to hike the transit tariff by 10.2% starting on February 1, 2024. A Transneft representative confirmed the information to Kommersant.

Russian oil is delivered to Hungary, Slovakia and the Czech Republic via Belarus through the southern branch of the Druzhba pipeline. The pipeline also carries Kazakh oil, which is delivered via its northern branch through both Russia and Belarus to Germany and Poland.

The tariff hike for Russian oil will be smaller than what Belarus previously intended. In mid-November, Gomeltransneft Druzhba proposed raising the tariff for the transit of oil through Belarus by 14.5% to 195.8 rubles ($2.1) per ton, but Transneft considered that hike too high. Minsk explained at the time that such a hike was necessary due to a sharp decrease in pumping after the EU placed sanctions on Russia in connection with the Ukraine conflict, which included a partial embargo on Russian oil imports. According to the operator, overall oil transit through the country fell nearly fivefold this year compared to 2022.

Meanwhile, Minsk also plans to raise the tariff for Kazakh oil, by 43% to 653.8 rubles per ton ($7.1), due to a 17-fold decrease in oil transit through the northern branch of the pipeline over the past year. Astana has been opposed to the hike, and reportedly plans to dispute the matter with Minsk.


READ MORE:
EU countries get Russian oil exemption – Reuters

Transneft indicated that discussing tariffs on Druzhba’s northern branch is not within the company’s competence, because that part of the pipeline does not transport Russian oil. Russian Energy Minister Nikolai Shulginov earlier noted that Kazakhstan has not been involved in the tariff discussions because the pipeline does not belong to Kazakhstan. He indicated, however, that Astana and Moscow have already reached a consensus that Kazakhstan will supply 1.2 million tons (100,000 tons a month) of oil through Druzhba next year.

For more stories on economy & finance visit RT’s business section

Real Estate Investor Pulse

1031 Exchange E-Book

ENB Top News 
ENB
Energy Dashboard
ENB Podcast
ENB Substack

About Stu Turley 3361 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.