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Russia says oil flow to restart | Russia says oil flow to restart |
(20 minutes later) | |
Oil should start to flow "soon" via the Druzhba pipeline that crosses Belarus, officials from Russia and the EU say. | Oil should start to flow "soon" via the Druzhba pipeline that crosses Belarus, officials from Russia and the EU say. |
Vladimir Chizhov, Russia's ambassador to the EU said oil could start flowing in the next few hours, a view echoed by the EU's energy chief Andris Piebalgs. | Vladimir Chizhov, Russia's ambassador to the EU said oil could start flowing in the next few hours, a view echoed by the EU's energy chief Andris Piebalgs. |
The news comes after Russia cut off oil to Belarus on Monday, claiming it had been siphoning off supplies. | |
In retaliation, Belarus put a transit tax on oil shipments from Russia, but withdrew it earlier on Wednesday. | In retaliation, Belarus put a transit tax on oil shipments from Russia, but withdrew it earlier on Wednesday. |
One of Russia's main demands had been that the tax be cancelled, in a bid to resolve the dispute. | One of Russia's main demands had been that the tax be cancelled, in a bid to resolve the dispute. |
Mr Chizhov said he thought the issue had effectively been resolved and Mr Piebalgs said he thought oil would be flowing normally by Thursday at the latest. | Mr Chizhov said he thought the issue had effectively been resolved and Mr Piebalgs said he thought oil would be flowing normally by Thursday at the latest. |
However, while Mr Piebalgs said the EU was keen to keep using Russian oil, he also sought reassurance that oil would not be cut off again. | However, while Mr Piebalgs said the EU was keen to keep using Russian oil, he also sought reassurance that oil would not be cut off again. |
Criticism | Criticism |
The move by Russia to cut off supplies via the Druzhba - or Friendship - pipeline has elicited much criticism, most recently from the International Energy Agency's head Claude Mandil. | The move by Russia to cut off supplies via the Druzhba - or Friendship - pipeline has elicited much criticism, most recently from the International Energy Agency's head Claude Mandil. |
RUSSIAN OIL USERS* Hungary - 83.5% of all oil suppliesSlovakia - 82.2%Finland - 79.1%Poland - 77.2%Czech Republic - 49.3%Belgium - 31.8%Sweden - 29.4%Germany - 26.2%Netherlands - 25.3%Italy - 18.1%Austria - 16.8%France - 11.4%Denmark - 2.1% *Source: Petroleum Economist magazine Q&A: Pipeline shutdown Analysis: Oil row | RUSSIAN OIL USERS* Hungary - 83.5% of all oil suppliesSlovakia - 82.2%Finland - 79.1%Poland - 77.2%Czech Republic - 49.3%Belgium - 31.8%Sweden - 29.4%Germany - 26.2%Netherlands - 25.3%Italy - 18.1%Austria - 16.8%France - 11.4%Denmark - 2.1% *Source: Petroleum Economist magazine Q&A: Pipeline shutdown Analysis: Oil row |
He said the move undermined faith in Russia as an oil exporter. "It is more difficult to be confident" Mr Mandil told the Reuters news agency. | He said the move undermined faith in Russia as an oil exporter. "It is more difficult to be confident" Mr Mandil told the Reuters news agency. |
Mr Mandil added that if stocks in countries affected were to fall under 90 days worth the IEA would "order a co-ordinated stocks release". | Mr Mandil added that if stocks in countries affected were to fall under 90 days worth the IEA would "order a co-ordinated stocks release". |
German Chancellor and current European Union president Angela Merkel had denounced the pipeline closure as unacceptable and one that "destroyed trust" in Russia as an energy supplier. | German Chancellor and current European Union president Angela Merkel had denounced the pipeline closure as unacceptable and one that "destroyed trust" in Russia as an energy supplier. |
Talks | Talks |
Earlier on Wednesday, Moscow and Belarus had been in talks to resolve the dispute. | Earlier on Wednesday, Moscow and Belarus had been in talks to resolve the dispute. |
Following those talks a statement from Belarus President Alexander Lukashenko's office said: "The prime ministers of Belarus and Russia were ordered to work out concrete proposals within two days for resolution of all problem questions." | Following those talks a statement from Belarus President Alexander Lukashenko's office said: "The prime ministers of Belarus and Russia were ordered to work out concrete proposals within two days for resolution of all problem questions." |
The dispute was sparked when Russia forced Minsk to grudgingly accept a doubling in the price of gas supplies. | The dispute was sparked when Russia forced Minsk to grudgingly accept a doubling in the price of gas supplies. |
In retaliation, Belarus imposed a new tax on Russian oil shipments passing through the country. Russia has refused to pay the duties, saying they are illegal. | In retaliation, Belarus imposed a new tax on Russian oil shipments passing through the country. Russia has refused to pay the duties, saying they are illegal. |
On Monday the conflict came to a head when Russian state-owned pipeline firm Transneft closed the Druzhba pipe, saying Belarus had been siphoning off oil supplies as payment in kind for the unpaid duties. | On Monday the conflict came to a head when Russian state-owned pipeline firm Transneft closed the Druzhba pipe, saying Belarus had been siphoning off oil supplies as payment in kind for the unpaid duties. |
The 2,500-mile-long pipeline has the capacity to ship more than 1.2 million barrels a day to eastern and central Europe and typically works at close to full capacity. | The 2,500-mile-long pipeline has the capacity to ship more than 1.2 million barrels a day to eastern and central Europe and typically works at close to full capacity. |