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Russia oil row hits Europe supply | Russia oil row hits Europe supply |
(10 minutes later) | |
Belarus has halted Russian oil supplies to Poland, Germany and Ukraine after a trade row with Moscow escalated. | Belarus has halted Russian oil supplies to Poland, Germany and Ukraine after a trade row with Moscow escalated. |
Disruptions hit Transneft's Druzhba pipeline overnight before supplies were severed completely at Poland's border with Belarus, Polish officials said. | Disruptions hit Transneft's Druzhba pipeline overnight before supplies were severed completely at Poland's border with Belarus, Polish officials said. |
The problems arose after Belarus began legal action against Transneft for failure to pay a new oil shipment tax on oil supplies piped through Belarus. | The problems arose after Belarus began legal action against Transneft for failure to pay a new oil shipment tax on oil supplies piped through Belarus. |
It signals the latest twist in an energy row between Belarus and Moscow. | It signals the latest twist in an energy row between Belarus and Moscow. |
The dispute began after Russian energy giant Gazprom forced Belarus to accept a huge increase in the price of Russian gas. | The dispute began after Russian energy giant Gazprom forced Belarus to accept a huge increase in the price of Russian gas. |
Russia has called for an end to the oil shipment tax saying it threatens supplies to Europe. | Russia has called for an end to the oil shipment tax saying it threatens supplies to Europe. |
Supplies interrupted | Supplies interrupted |
Every day Russia transports about a fifth of its oil exports - or one million barrels - through Belarus, mainly to refiners in Poland and Germany. | Every day Russia transports about a fifth of its oil exports - or one million barrels - through Belarus, mainly to refiners in Poland and Germany. |
"Oil supplies via the Druzhba pipeline to Poland and Germany were halted overnight. We sent a letter to Belarus asking for explanations," said Tomasz Zakrzewski, a spokesman for Polish pipeline operator PERN. | "Oil supplies via the Druzhba pipeline to Poland and Germany were halted overnight. We sent a letter to Belarus asking for explanations," said Tomasz Zakrzewski, a spokesman for Polish pipeline operator PERN. |
Poland's deputy economy minister, Piotr Nalmski, said that the supply problems were a result of the trade row, while adding that the country had sufficient oil reserves for 80 days. | Poland's deputy economy minister, Piotr Nalmski, said that the supply problems were a result of the trade row, while adding that the country had sufficient oil reserves for 80 days. |
"This shows us once again that arguments among various countries of the former Soviet Union, between suppliers and transit countries, mean that these deliveries are unreliable," he told the BBC. | "This shows us once again that arguments among various countries of the former Soviet Union, between suppliers and transit countries, mean that these deliveries are unreliable," he told the BBC. |
Germany said supplies to its Leuna and Schwedt refineries in eastern Germany had also been halted. | Germany said supplies to its Leuna and Schwedt refineries in eastern Germany had also been halted. |
Michael Glos, German Economy Minister, said he viewed the pipeline closure with concern and called on Russia and Belarus to meet their energy transit and delivery responsibilities. | Michael Glos, German Economy Minister, said he viewed the pipeline closure with concern and called on Russia and Belarus to meet their energy transit and delivery responsibilities. |
"I expect the deliveries through the pipeline to resume completely as soon as possible," he said. | "I expect the deliveries through the pipeline to resume completely as soon as possible," he said. |
However, officials in Minsk declined to comment on the situation, saying all questions should be directed to Transneft. | However, officials in Minsk declined to comment on the situation, saying all questions should be directed to Transneft. |
Meanwhile, Transneft said it was doing all it could to boost supplies from via other routes. | Meanwhile, Transneft said it was doing all it could to boost supplies from via other routes. |
Relations sour | Relations sour |
Further reports suggested that the company had also accused Belarus of siphoning off Russian oil destined for Europe from the pipeline. | Further reports suggested that the company had also accused Belarus of siphoning off Russian oil destined for Europe from the pipeline. |
The cut off in oil supplies is the latest twist in a row between Moscow and Minsk over energy prices. | The cut off in oil supplies is the latest twist in a row between Moscow and Minsk over energy prices. |
Last week Belarus said it would charge Russia $45 (£23) per tonne of oil that passed through its country. | Last week Belarus said it would charge Russia $45 (£23) per tonne of oil that passed through its country. |
The tit-for-tat tax move was introduced by the Belarusian government days after the country was forced to accept a doubling of Russian gas charges - from $47 to $100 - when Moscow threatened to cut supplies if Belarus refused to agree new prices. | The tit-for-tat tax move was introduced by the Belarusian government days after the country was forced to accept a doubling of Russian gas charges - from $47 to $100 - when Moscow threatened to cut supplies if Belarus refused to agree new prices. |
News of the disruption to supplies was a key factor helping to drive oil prices closer to the $57-a-barrel mark on Monday after falling to around the $55 level last week. | News of the disruption to supplies was a key factor helping to drive oil prices closer to the $57-a-barrel mark on Monday after falling to around the $55 level last week. |
US light sweet crude rose 60 cents to $56.91 a barrel in early trade, while in the UK Brent crude stood at $56.43 - up 79 cents. | US light sweet crude rose 60 cents to $56.91 a barrel in early trade, while in the UK Brent crude stood at $56.43 - up 79 cents. |
News that Saudi Arabia, the world's largest oil producer, planned to cut output also helped to drive crude prices higher. | News that Saudi Arabia, the world's largest oil producer, planned to cut output also helped to drive crude prices higher. |
Saudi Arabia said it would cut output by 158,000 barrels a day from 1 February - in line with the latest production cuts set out by oil cartel Opec in an effort to boost prices. | Saudi Arabia said it would cut output by 158,000 barrels a day from 1 February - in line with the latest production cuts set out by oil cartel Opec in an effort to boost prices. |