Monday, January 18, 2010

Russia, Belarus oil supply talks mired in deadlock

MOSCOW, Jan. 11 (Xinhua) -- Russia and Belarus failed to clinch a new oil supply deal during their talks on Saturday, which was the latest attempt to resolve a pricing dispute. Though both sides have expressed their willingness to continue negotiations, the standoff has raised concerns over potential supply cuts to Belarus and the European Union.

Belarus imported about 20 million metric tons of Russian oil last year at only 35.6 percent of the current crude export duty, which stood at 267 U.S. dollars per metric ton as of Jan. 1. The transit country consumes about a quarter of the Russian oil deliveries with the rest processed and pumped to the West.

Belarus was seeking a similar discount for 2010 but failed to strike a new agreement with Russia before the previous accord expired at the end of December.

Russia said it has offered to continue "preferential" terms this year, which allow Belarus to buy 6 million tons of crude for domestic consumption without tariffs but demand full import duties on some 14.5 million tons of oil bound for European markets.

Belarus insists all Russian crude should be duty-free, citing an agreement on customs union signed late last year. However, Russian Prime Minister Vladimir Putin argued last week that energy deliveries to Belarus were not covered by the customs union between the two countries and Kazakhstan, which came into effect on Jan. 1.

As negotiations repeatedly broke down over the New Year period, Russian oil flows to Belarusian refineries, Naftan and Mozyr, suffered a brief interruption before they resumed on Jan. 3.

The spat, coming as Europe is gripped by freezing weather, fueled fears about a repeat of disruptions three years ago, when Russia suspended supplies via Belarus to Germany and Poland.

Russian Deputy Prime Minister Igor Sechin, who led the Russian delegation at the talks, earlier pledged unaffected oil supplies to European customers while Moscow and Belarus were working on a new pact.

The dispute is the fourth time in five years that Russian energy supplies through Belarus or Ukraine have come into question around New Year holiday. Russia cut off gas deliveries to Ukraine about a year ago, leaving tens of thousands of Europeans without heating gas in the depths of winter.

The West accused Russia of using its vast resources to bring its former Soviet neighbors to heel, while Moscow said it wants simply to raise energy prices and transit rates to market levels after subsidizing its neighbors for many years with preferential terms.

"With both sides standing firm now, the dispute could get worse before it is resolved," Andrew Neff, an analyst at IHS Global Insight in Washington, was quoted as saying by Russian daily the Moscow Times.

Minsk's revenues from oil re-exports hit 10.7 billion dollars in 2008 and plunged to 6.5 billion dollars in 2009, accounting for35 percent of the country's total exports, according to estimates by Yaroslav Romanchuk, head of the Belarusian Scientific Research Mises Center, a think tank.

It is estimated that Russia's new offer means a 2.5-billion-dollar increase in costs for Belarus, or 5 percent of the country's gross domestic product.

If Russia prevails in the dispute, Belarus will earn 3-4 billion less this year, resulting in an economic shrinkage of 6-8 percent, Romanchuk said.

The dispute has also contributed to the oil price's surge to a 15-month high above 83 dollars per barrel recently. Urals crude, Russia's main export earner, rose to 80.37 dollars a barrel on Friday, its highest price since October 2008.

Germany and Poland are believed to be hit hardest once Russia halts shipments through the Druzhba pipeline. Germany depends on Russian crude for about 15 percent of its total consumption, and Poland buys from Russia to meet 75 percent of its market demands.

Minsk has threatened to raise the transit fee for its European customers more than tenfold, from 3.9 dollars to 45 dollars per metric ton, should Moscow not agree to its conditions, RIA Novostinews agency quoted an unidentified expert close to the talks as saying.

Belarus last week even warned of stopping electricity transmissions from Russia to its Baltic enclave of Kaliningrad in an apparent retaliation at the duty hike.

Sergei Kolchagin, a senior fellow at the Russian Academy of Sciences' Institute of Economics, said Minsk is highly likely to accept Moscow's terms since it has few other options.

Belarus would exert pressure on Russia by threatening to withdraw from their common air border security and air defense system pacts, Kolchagin said, although it seemed unlikely the bargaining would go that far.

Another possible solution would be Russian firms' acquisition of the Belarusian refineries, a Russian proposal that has so far received no response.

Source:news.xinhuanet.com/

Russian oil cuts to Belarus could be imminent -trade

Oil stoppage likely soon if no deal reached - traders




* Pre-paid oil volumes running low





By Gleb Gorodyankin and Vladimir Soldatkin



MOSCOW, Jan 14 (Reuters) - Time is running out for Moscow and Minsk to reach agreement on terms for Russian oil supplies to Belarus, traders said on Thursday, raising the likelihood of a stoppage in crude flows any time over the next few days.



Russia could soon cut supplies to Belarussian refineries, the traders told Reuters. While this would not affect transit supplies to Europe, it raises the spectre of disruptions should the dispute escalate or should Minsk choose to divert flows.



"I guess oil supply cuts should be expected soon," a trader at a Russian oil major told Reuters.



Europe, mindful of a dispute in 2007 that cut Russian oil supplies via Belarus, is keen that the ex-Soviet states resolve their differences over oil pricing and tariffs. Talks broke down on New Year's Eve and have faltered several times since.



The Belarussian spur of the Druzhba pipeline supplies about one-tenth of Europe's supplies from West Siberia

Source:uk.reuters.com/

Belarus President approves state border security policy for 2010



MINSK, 18 January (BelTA) – President of Belarus Alexander Lukashenko has approved the state border security policy and border security efforts to be implemented in the Republic of Belarus in 2010, BelTA learnt from the presidential press service.

The President was informed on the operation of the border service in 2009 and the major tasks set for 2010. At present, apart from protecting the state border, the border service coordinates the implementation of the state border policy with the local authorities. The reformation of the border service is complete and there will not be any need for reforms within the next decade.

The President heard out a report on the situation on the Belarusian-Russian administrative border, the borders with the EU and Ukraine. Alexander Lukashenko expressed concern over the information coming from the Belarusian-Russian administrative border. “I am worried about the information that comes from the Belarusian-Russian border against the background of the formation of the Customs Union of Belarus, Russia and Kazakhstan. Contrary to our arrangements, the border control is being tightened. It is not ok when such things happen when we work on establishing the single customs territory and are members of the Union State,” Alexander Lukashenko said. He asked to check this information and report on the results.

Apart from that, the President asked to study separately the situation on the Belarus-Ukraine border, saying that it is the most troublesome part of the border. “It is not that we are worried about the situation on the Ukrainian border. It is just because there were more things to do there,” the Belarusian head of state said.

Belarus has started the preparations for the state border demarcation. The process will be launched once Belarus ratifies the treaty on the state border with Ukraine. Belarus completed the demarcation with the Baltic states (with Latvia on 18 February 2009 and with Lithuania on 19 June 2008).

The agreements on travels regulating travels of citizens of frontier regions with Lithuania, Latvia and Poland were considered at the meeting. According to the estimates once they are signed, passenger flow with these countries will increase. These agreements will enhance the attractiveness of Belarus for foreign tourists, give an impetus to the development of frontier regions of the country and eradicate extra red tape in the communication of people who have ethical roots or family abroad.

In 2009 alone some 3.5 million Belarusians crossed the Belarusian border crossing points at least once. Some 1.5 million of them went to the EU countries and around 2 million people to Ukraine. Despite the global financial crisis, the passenger and transport flow remained virtually at the level of 2008.

In 2009, the Belarus Border Committee itself and in cooperation with KGB, the Interior Ministry and the State Customs Committee seized material values to the tune of more than Br34.6 billion.

Some 515 border violators were detained in 2009, the same number as in 2008. The number of illegal transit migrants downed from 124 to 111 people. At the same time the number of detentions for the violation of the border legislation has increased significantly – from 4471 to 7184 people.

Last year the work on optimizing the border zone depth and simplifying border crossing rules was completed. About 2,000 permits a year to visit the border zone were issued earlier. More than 4,000 permits were issued in 2009. At the same time the level of the security remained the same and control over the stay of foreign citizens in border zones was ensured.

In 2009, the Belarus Border Committee developed cooperation both with border services of the neighboring countries and the Belarusian law-enforcement bodies. The Committee continued working on using more domestically-made equipment in the state border protection, developing the potential of the border service aviation.

The head of state also approved the setting up of the Border Service Institute in Belarus.

Source:law.by/

Are IMF loans for Belarus the main reason

The IMF is ready to intervene in the oil dispute of Moscow and Minsk. Experts think that the IMF have decided to join the game.

The IMF permanent representative in Belarus Natalia Kolyadina has stated that the foundation is set to rry out talks on conditions of oil import from Russia, Vzglyad newspaper writes.

“We haven’t completely calculated the influence of changed terms of oil import in Belarus at balance of payments. It would be done during the future mission,” Kolyadina said.

Besides, as said by the permanent representative, measures needed for minimization of the negative influence on balance of payments and further implementation of stand-by program are to be discussed.

We remind that Russia and Belarus entered the new 2010 year without an agreement on oil deliveries and transit. Oil transit via Belarus to Europe continues, as well as deliveries to Belarusian refineries. The issue of deliveries of Russian oil to Belarus is still up in the air.

Interstate dispute

Yevgeny Minchenko, Director of the International Institute of Political Expertise, wonders: “I sincerely do not understand what the OMF has to do with that, as it is a dispute between the states?”

Russia’s stand in this contest is dispute is more than clear: there are internal wants of Belarus, about 8 million tons of oil, and part of them Belarus provides itself, and the rest, 6.3 million tons, Russia is ready to deliver on duty-free basis. The rest which is delivered abroad is naturally offered to be delieved with duties.

“Otherwise it happens that we discriminate against our own manufacturers; our Belarusian colleges get an opportunity to compete I the same markets where we enter. The issue in question is dozens millions tons of oil. It turns out that the budget and Russian enterprises have losses,” the analyst noted, adding that the last three years the favourable regime of taxation has resulted in $10 billion loss for Russia.

Another part of the dispute is pumping tariff. “Belarusians say that their tariffs are lower than in Russia. It is really so, but one should understand that investment component is added to the cost of oil pumping through Russia,” Minchenko said.

These are pipelines which Russia has to construct additionally (For instance, “South Stream”). And in Belarus everything has been constructed already. “Statements of this wonderful organisation seem rather strange for me,” the analyst cincluded.

Are loans the reason?

An expert with the Russian Political Situation Center, Dmitry Abazalov linked energizing of the IMF in the oil dispute of Moscow and Minsk with offering the last credit line. We remind that Belarus is implementing payment balance stabilization program with IMF, which is supported by a stand-by credit of 3.63 billion dollars from January 2009 to April 2010. The IMF has granted Belarus almost 2.9 billion dollars.

“Expecting the loan, Belarus once offered European partners to privatize part of active assets. It is clear that this privatization is not profitable for them, but Belarus can try to play with the IMF,” the expert believes. And the IMF may try to play on contradictions of Moscow and Minsk.

It is a different story that the IMF will act strictly within the framework of the set borders: the European leadership does not need destabilization of the situation.

At the same time, Abzalov believes that despite of all agreements, all these statements are to remain at the level of promises. “It seems to me that the IMF is simply trying to gain a footing in the region,” he said.

Source:charter97.org/

Local “elections” in Belarus scheduled for April 25, 2010

As Interfax reports with reference to the press service of the head of state, the document orders the Central Commission on Elections and Referendums to hold the elections to the local councils and make sure that the electoral law is observed during the elections.

The governmental bodies and other institutions should prepare and hold the elections within the deadlines designated by the Electoral Code of Belarus, the document says.

Besides, the decree obliges the Council of Ministers of Belarus to finance preparation and holding the elections to the local councils within the funds form the national budget provided for this purpose.

As charter97.org has reported earlier, all electoral campaigns in Belarus held since 1996 are recognized unfree and unfair by the international community. On this assumption, Lukashenka is not considered legitimate since 1999. Nevertheless, as the result of the 2004 referendum unrecognized by the international community, he authorised himself to be re-elected an unlimited number of times. CEC head Lidziya Yarmoshyna has been put on the list of restricted to enter the EU countries and US for rigging the results of elections and referendums.

Source:charter97.org/

European Parliament: We didn’t invite Belarusian MPs

A working group on forming the Eastern Partnership Parliamentary Assembly has its first meeting in the building of the European Parliament on January 14.




The meeting focused on the principle of representation of the EU national parliaments in the initiative.



Belarus was represented by Syarhei Maskevich, the head of the Standing Committee on Foreign Affairs and Ties with the CIS of the “house of representatives”, and Nina Mazai, the head of the Standing Committee on Foreign Affairs and National Security of the “council of the republic”.



However, this does not mean that the European Parliament has recognized the Belarusian parliament as legitimate, Euroradio learnt from a source in this European institution. The meeting was organized by the Swedish Parliament, not by the European Parliament. Invitations were sent by Goran Lennmarker, Chairman of the Foreign Affairs Committee in the Swedish Parliament.



“This meeting was organized by the Swedish Parliament. The fact that it took place in the building of the European Parliament was simply a technical issue of having a venue. Indeed the European Parliament has little to do with this event,” the EP representative says.



When asked why opposition leaders were not invited, the source said that this issue was decided by the Swedish side, i.e. the European Parliament had nothing to do with this decision.



We remind that the European Parliament does not recognize Lukashenka’s “national assembly” as legitimate, because the 2008 parliamentary elections were not recognized free and fair.



Various European countries have different views on the invitation of Belarusian MPs to EURONEST.



“Parliamentarians from several EU member countries do not agree that the delegation of Belarus should comprise the members of the Belarusian parliament. Their national parliaments will not endorse this concept. The European Parliament does object to this concept as well. But, the European Parliament is not directly linked with this issue,” the EP representative said.



The meeting on January 14 was attended by representatives of the UK, Lithuania, Poland, Sweden and Spain. Lithuania spoke against the participation of the Belarusian MPs.



There are several options for Belarus to participate in EURONEST. Firstly, MPs only can be part of the Belarusian delegation. Secondly, there could be both MPs and representatives of the opposition (5+5). The third option is that Belarus is represented by opposition politicians only.



However, any participation of the opposition would be of status significance only, inviting Belarusian MPs would mean that EU values are disregarded.



“inclusion of representatives of the official “parliament” only in the Eastern Partnership Parliamentary Assembly would mean recognition of the falsification system in Belarus” politologist Yury Chavusau thinks.



Taking the final decision on the Belarusian delegation to Euronest is expected within the next several weeks. On January 21, this issue will be discussed by the president of the European Parliament, leaders of political groups and one independent MEP.



EURONEST's founding conference is preliminary scheduled for March 2010. There will be 60 seats for MEPs and 10 seats for each of the Eastern Partnership member states: Belarus, Azerbaijan, Armenia, Georgia, Moldova and Ukraine.

Source:charter97.org/

Viktor Yushchenko's legacy for Ukraine? Smiling people


Viktor Yushchenko, Ukraine’s outgoing president, has tasted a heavy defeat at the polls. But despite his humiliating rejection by all but 6 per cent of the electorate, history should judge him kindly.

For all the political and economic turbulence of the past five years, Ukraine has been transformed under his presidency from just another ugly post-Soviet basket case into a country with real hopes of success as a democratic civil society.

One has only to compare political life in neighbouring Belarus and Russia to the vibrancy of the contest in Ukraine to see the effect the Orange Revolution has had.

Voters enjoyed a genuine choice of candidates reflecting a full spectrum of political opinions. Campaigns were conducted without fear that the ruling regime would send in riot police to break up election meetings and arrest opposition activists.

Vigorous debates were available on every television channel, while street billboards were a riot of posters from competing candidates.

Mr Yushchenko and his former Orange ally Yuliya Tymoshenko, the Prime Minister, did not use the infamous “administrative resources” so often wheeled out in Russia to rig results.

One of the most remarkable aspects of the first round of voting was the absence of any serious complaints from candidates about ballot-rigging, given the massive fraud that prompted the Orange revolt in 2004.

Ukraine still has many problems, particularly with corruption, and none of these achievements is irreversible. But people freely speak their minds here and the fear that so stifles public life in other former Soviet republics has gone.

Which is why Ukraine matters and why the West has a big stake in the outcome of this election. The Kremlin keenly portrays its neighbour to domestic audiences as being in a state of constant chaos since the revolution because it fears the example of a thriving open society on Russia’s border. A Ukraine that works is a direct challenge to the former KGB spooks and shadowy apparatchiks who control politics in Moscow.

A trend has developed in recent years for Russians to travel to Kiev for the weekend to enjoy the more relaxed atmosphere of Ukraine’s capital, where police keep a lower profile than their counterparts in Moscow. They see that people smile more easily, service in restaurants and stores is more cheerful, that the tension they sense at home is absent in human relations.

In short, they see that Ukrainians have a stake in their society and can influence its future, and that this affects the public mood. The average Russian has no such opportunity and feels a sense of sullen resentment towards the authorities that leaves the Kremlin constantly fearful of political upheaval.

This election will determine whether the Ukrainian experiment continues or starts to degrade. It is tempting for the United States and the European Union collectively to wring their hands at the bickering that soured the Orange dream but Mr Yushchenko has left a legacy worth defending and they should be far more vigorous in saying so.

Source:timesonline.co.uk/

A tough week for Dirk in Belarus court

Dirk Prinsloo spent hours watching porn on his computer - but never child porn, according to a former girlfriend and mother of his baby daughter.

It was this habit that led to his arrest on June 12.

The former South African advocate, notorious for his antics with Cezanne Visser, also known as Advocate Barbie, has just spent a week in the Baranovichi High Court in Belarus.

Prinsloo, who was standing trial with Visser on sex-related charges, was on the run from South African authorities after skipping bail and was on Interpol's wanted list when he was arrested in the eastern European country.
He is accused of stealing a necklace from another former girlfriend, Svetlana Vasily; torturing and threatening to kill a former lover known as Anastasia; the attempted robbery of a branch of the Bank of Belarus on June 10; and hooliganism, for allegedly assaulting a woman while fleeing the bank.

He was caught two days later at an internet cafe in Minsk, while e-mailing a girlfriend that he was going to flee to Russia.

Prinsloo refused to plead to the charges on Monday, claiming that he had not consulted his advocate yet. But he denied any knowledge of the theft, torture and threat of murder charges on Friday.

He "partially admitted guilt" - a plea option in Belarus - to the attempted robbery, saying he was in emotional turmoil at the time because of his financial problems.

He also apologised to Belarus, South Africa and the female employees at the bank.

The court heard evidence similar to what Visser testified in her trial, which she faced alone after Prinsloo skipped bail and fled to Russia in 2006. Visser was found guilty on 11 charges last year.

He said Vasily was scared that he could be killed if he returned, but he feared imprisonment for "crimes I did not commit".

So the couple decided to move to Belarus, neighbouring Russia, to start a new life.

The necklace Vasily claimed that he had stolen was one he had bought for Visser, Prinsloo said.

But their relationship deteriorated because of the South African court case, so he never gave it to her and instead took it to Russia to sell.

He claimed that he was on the brink of bankruptcy because of the trial in his home country.

Judge Vasily Petriv asked how he got the necklace, valued at nearly E5 000, into Russia.

Prinsloo said his bags were checked, but no one questioned him about it.

According to Prinsloo, this necklace was very similar to the one three of his former girlfriends had described to police.

"There are many reasons why Svetla will lie about the necklace. She had an internet affair with a Swedish guy while pregnant with my son. It upset me very much. She and this guy knew that Interpol wanted me," Prinsloo said.

He added that although all the women claimed that he introduced himself as Michael Grant, an Australian businessman, at least two of them, including Vasily, had his real names tattooed on their private parts.

Prinsloo said Vasily and her Swedish boyfriend threatened to sell him out to Interpol if he demanded contact with his son.

He then dated Tatiana Leshko, who bore him a daughter. According to Prinsloo, Leshko acted as intermediary between him and Vasily.

"I never knew Tatiana asked Svetla for money for me. I never got the money. I just one day heard Svetla is angry as I haven't paid her back, so she is laying this charge to get back at me," he said.

Prinsloo said Vasily was also upset that he gave the necklace to Leshko. He said the women gave the same description of the necklace, as they were guided by police.

Referring to the charges laid by Anastasia, Prinsloo said the time they lived together was the worst of his life.

"She is an extremely manipulative and possessive person. I made the mistake of having sex with her. She wanted it at least six times a day, and I didn't really want to have sex with her," Prinsloo said.

This was in stark contrast to Anastasia's evidence that Prinsloo saw himself as a god, and her as his slave.

He claimed that she, too, had his real names tattooed on her private parts, and his Interpol picture tattooed on her abdomen.

He kept contact with Leshko while in other relationships. When he moved back to Baranovichi, she found him a flat and paid for it.

Prinsloo felt that she betrayed him to police, as she knew of the bank robbery. Leshko testified that she never thought that he was serious, and would always feel guilty for not raising the alarm when she saw him entering the bank.

This 23-year-old woman testified that Prinsloo gave her the necklace to sell. Although the two tried to run a balloon business, she ended up running it alone while pregnant, as Prinsloo was spent hours in front of the computer.

"I knew he watched porn, but never child porn, that I know of. But after Ksenia, our daughter, was born, I had to keep working.

"One of the main reasons I broke up with him was because I was dissatisfied with his behaviour as a father."

Leshko said she would return from work to find Prinsloo in front of the computer, while Ksenia lay crying in the bedroom.

She learnt Prinsloo's true identity only after his arrest, she said.

However, there had been things that had made her wonder. "He would talk about the 'president' of Australia, or how he had fought in Angola. These things just did not make sense for someone who really came from Australia," she said after she had testified.

Over the past week Prinsloo and Judge Petriv locked horns several times.

Prinsloo wanted to cross-examine witnesses, which is done in South Africa, but is not permitted in Belarus.

The judge also felt that Prinsloo was argumentative, and warned him several times that he could be removed from court if he "continued to disrupt the court order".

This happened on Thursday. But Prinsloo was back in court - in the cage that serves as the dock for alleged dangerous criminals - on Friday.

After Prinsloo claimed that he had been tortured by police and that the women were told what to testify, Petriv ordered an investigation. In addition, some witnesses who had been summonsed did not attend the trial. The judge ordered that they be brought to court on January 26, when the trial resumes.

Source:ol.co.za/

Strong Stocks Buoy Oil Prices

LONDON—Crude oil futures rose Monday, after stronger European equities helped oil prices pare losses incurred earlier in the session and during Asian trade.


The front-month February contract was trading 49 cents higher at $78.49 a barrel in European electronic trading on the on the New York Mercantile Exchange. On Friday, the contract slid $1.39 to settle at $78.

Despite the small gains, market participants remained cautious about the prospects of sustained rises in oil price, with little sign emerging of improving supply and demand fundamentals.


Associated Press
Trade activity is expected to be light Monday, with a public holiday in the U.S. sidelining many participants. Oil prices garnered some support from European equity markets, which rose as higher gold and other metals prices supported basic resource stocks.

However, many participants were unconvinced that the crude oil market can break its recent bearish trend, which has seen prices retreat by almost $5 a barrel since Jan. 6.

Adding further doubt to bullish hopes is the growth in net long positions by speculative traders, who are expected to liquidate their positions and exit the markets if crude oil prices continue their weakening trend.

"Speculative traders have been increasing their net long positions by over 80,000 contracts, a 15% rise in the past month, and this could put on selling pressure should the oil price continue to drop below $74 a barrel," said Mark Pervan, head of commodity research at ANZ in Melbourne.

Separately, the prospects of increased production by the Organization of Petroleum Exporting Countries is also damping sentiment. The International Energy Agency last week estimated OPEC compliance to have fallen to 58% in December from 60% a month earlier, indicating a further loosening of compliance by the oil-producer group to their previously agreed 4.2 million barrel-a-day cut in supply.

"We have always reiterated that excessive output is worrying, given overhang stocks and the fact that OPEC remains the key swing producer with significant spare capacity at the moment," said Andrey Kryuchenkov, an analyst at VTB Capital. "The most important issue for the price outlook is for OPEC not to overproduce this year as swollen stockpiles do not need extra supplies at the moment."

The pricing dispute between Russia and Belarus over export duties continues to put oil flows to Europe at risk, with the latest reports suggesting Russia has diverted an oil shipment earmarked for Belarus to the Polish oil terminal of Gdansk. The Polish port will load a 100,000-metric-ton tanker with Russian oil at the end of January, a shipment that hadn't been earlier expected, Naftoport chief executive Dariusz Kobierecki told Dow Jones Newswires.

In other trading, the front-month March Brent contract on London's ICE futures exchange was 33 cents higher at $77.44 a barrel. The ICE gasoil contract for February delivery was $3.25 lower at $626.75 a metric ton, while Nymex gasoline for February delivery was 116 points higher at 205.70 cents a gallon.

Source:online.wsj.com/

Australian Open: Paes-Dlouhy seeded third, Bhupathi-Mirnyi fourth

MELBOURNE: India's Leander Paes and Czech Lukas Dlouhy have been seeded third while India-Belarus pair Mahesh Bhupathi and Max Mirnyi fourth at the Australian Open men's doubles.
Paes and Dlouhy play Czech pair Leos Friedl and David Skoch in the opener, while Bhupathi and Mirnyi, who rejoined in November, take on Michael Kohlmann of Germany and Jarkko Nieminen of Finland in the first round.

Also in the fray, are Somdev Devvarman and Prakash Amritraj. They face Americans James Cerretani and Travis Rettenmaier in the first round.

Rohan Bopanna and Pakistan's Aisam-Ul-Haq Qureshi are up against South African Rik De Voest and American Scott Lipsky.

In the women's doubles, Sania Mirza and Spain's Virginia Ruano Pascual, seeded 10th, meet Indonesia's Yayuk Basuki and Kimiko Date of Japan.

Source:imesofindia.indiatimes.com/

Moscow Tightens Squeeze on Belarus Oil Industry

The Russian government threatens Belarus with an imminent cessation of oil supplies to the country’s two big refineries, Mozyr and Navapolatsk (aggregate capacity at least 25 million tons annually).

The declared trigger of this threat is the dispute over Russian taxation of oil deliveries to Belarus (EDM, January 5). The undeclared motivation, however, is to pave the way for a Russian takeover of Belarus refineries and, in a follow-up stage, Russian control of the Belarus Druzhba oil transit pipelines to Europe.

According to Russian pipeline monopoly Transneft’s chief spokesman Igor Demin, oil supply volumes from Russia are running out at this week’s end for the Mozyr refinery, and one week later for the Navapolatsk refinery. At that point “there will be nothing to pump,” the spokesman warned. Russian oil producing companies have stopped submitting applications to transport their oil to Belarus through Transneft pipelines (Interfax, January 13, 14).

Russian oil companies use the Belarus refineries for processing more than 20 million tons of Russian crude annually. Rosneft and Lukoil (in that order) are the main users in terms of annual volumes. The Russian government and companies have pressed Minsk since at least 2008 to negotiate the terms of transferring the refineries to Russian control. Russian First Deputy Prime Minister Igor Sechin, who coordinates the ongoing negotiations with Belarus on oil supplies, is concurrently the chairman of the board of Rosneft.

Effective on January 1, the Russian government has withdrawn most of its indirect subsidies to the Belarus oil processing industry. Those subsidies came in the form of slashing the Russian export duties on the oil delivered to Belarus refineries (EDM, January 8).

Russian oil companies had almost certainly received their share of profits from Belarus’ highly lucrative exports of oil derivatives in recent years. The Russian government’s move on export duties, however, indicates that it seeks outright control of that industry in Belarus. By withdrawing the previous form of subsidy on crude oil, Moscow would drastically cut the Belarus refineries’ profit margins and turn them into easy targets for a Russian takeover.

If this scenario unfolds as apparently intended, Belarus would no longer earn the necessary revenue for upkeep of the Druzhba oil transit pipeline’s Belarus section. Minsk would have to turn to Moscow for financing that pipeline’s maintenance and modernization. That section carries a staggering amount of more than 70 million tons of Russian oil annually to European Union countries. Moscow would like to control the transit pipeline itself for added leverage in Europe.

The Belarus state holding Belnaftakhim owns the refineries and the Druzhba pipeline on Belarus territory. If deprived of revenue from the processing plants, Belnaftakhim could end up in the same situation as Naftohaz Ukrainy: unable to invest in the transit pipelines’ modernization and vulnerable to Russian takeover of the transit system.

President Alyaksandr Lukashenka’s government has tried to resist a Russian takeover of the refineries and, as a fallback position, to bargain over the terms. Moscow escalated the crisis on January 1 by cutting deeply into the refineries’ income, and thus also into Minsk’s tax base. It now threatens a further escalation through a possible suspension of oil supplies altogether.

Russia-Belarus inter-governmental negotiations over the oil export duty broke down in Moscow on January 9. Three days later, Lukashenka sent an explanatory letter to Russian President Dmitry Medvedev (Interfax, January 12). Belarus state media describe the situation less diplomatically:

“Russian officials are impervious to any arguments, they only pressure the [Belarus] negotiators: ‘sign, or the terms would be worse tomorrow.’ Certain people in the Russian government are resorting to a typical raiding [reyderstvo, Russian underworld expropriation] operation … Russian companies dream of privatizing the two Belarus refineries by Russian methods, for a song and without any further commitments. Moreover, Moscow is interested in controlling our [oil] transit pipelines” (Belarus state radio, January 11).

Moscow proposes to maintain the low export duty on the oil volume necessary for Belarus’ internal requirements only; and to impose the full export duty on the much larger oil volume being processed in Belarus for the export of refined products. The two volumes are 6 million tons and 15 million tons, respectively, per year. Should Minsk reject this arrangement, Moscow threatens to subject the aggregate quantity of 21.5 million tons to the full export duty. The negotiations broke down at that point on January 9. Moscow is now escalating further by threatening to suspend all deliveries.

Source:georgiandaily.com/i

Sunday, January 3, 2010

Belarus assails Russia over oil talks


MINSK, Belarus - Belarus accused Russia of exerting "unacceptable" pressure in talks on oil prices, and said Sunday that Moscow's demands undermined attempts at closer economic integration between the two ex-Soviet neighbors.

A Russian energy official, meanwhile, said the price arguments with Belarus wouldn't affect Russian oil exports to the West through the Belarusian pipeline.

Russia is the main ally and sponsor of Belarus, but relations between the two ex-Soviet neighbors have been increasingly strained by financial arguments.

The Belarusian Cabinet said in a statement Sunday that the two neighbors had failed so far to agree on terms of Russian oil exports to Belarus. It said Moscow's demand that Belarus pays a higher tax on the bulk of Russian oil shipment contradicted an agreement on customs union signed late last year.

It said Russian officials had put an "unprecedented pressure" on the Belarusian delegation during Sunday's talks, and described it as "totally unacceptable."

Russia had said earlier that it was ready to provide tax-free oil for Belarus' internal consumption in line with the customs union deal, but would fully tax all the oil Belarus processes for exports to the West.

Belarus buys about 20 million metric tons of Russian crude a year, but consumes only about one fourth of that. The rest is refined and exported to the West, accounting for more than a third of Belarus' export revenues.

Belarusian experts have estimated that the Russian tax would cost Belarus about $5 billion this year, or more than 10 percent of its gross domestic product.

Belarus' Soviet-style economy heavily depended on Russian oil and gas supplied at a lower price compared with other ex-Soviet nations.

In Moscow, Mikhail Barkov, vice president of the state-controlled Transneft company that runs Russian oil pipelines, said that price arguments with Belarus wouldn't affect Russian oil exports to the West, RIA Novosti news agency reported.

In January 2007, Russia briefly cut oil exports to the European Union nations through a Belarusian pipeline as Moscow and Minsk argued over price.

That shutdown, along with natural gas cutoffs to Europe in January 2006 and January 2009 caused by contract disputes with Ukraine, raised doubts in Europe about Russia's dependability as a top energy supplier to the continent.

Source:cnbc.com/

Belarus president hits out at EU 'cat and mouse game'


MOSCOU — Belarus President Alexander Lukashenko hit out at the European Union on Wednesday, attacking the bloc's criticism at the progress of the country's democratic reforms.

The EU last month suspended sanction against Belarus on the condition it improves democracy, human rights and rule of law.

"I said to the Europeans, if you plan on continuing this policy, this game of cat and mouse with us, say so," Lukashenko said.

"If you don't want to work with us and respect our conditions, say so as well," he added.

The Belarussian president, however, told reporters that it would be in the country's economic interest to forge closer ties with Brussels.

"If we are clearing the way towards Europe, it is not so that I can go to Austria on my skiing holidays. I can ski just as well in Kazakhstan," Lukashenko told reporters.

"We are clearing the way in that direction it is because 30 percent of our exports are sold to Russia and 44 percent to Europe. That tells you everything," he added.

The EU launched the Eastern Partnership at a summit in Prague in May to "accelerate political association and further economic integration" between its 27 member states and Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.

Lukashenko -- once dubbed Europe's last dictator -- has ruled the ex-Soviet republic of 10 million people since 1994 but has now made attempts at greater openness. He has hired a Western PR firm to improve his country's image and began cautious economic reforms.

Source:AFP

Belarus defender Dmitry Verkhovtsov desperate to join Celtic


Tony Mowbray met Dmitry Verkhovtsov yesterday to get the measure of the Belarus defender he can purchase for £500,000, but the Celtic manager has warned that his January transfer window activity will not be conducted at the expense of selling his title ambitions short.

Mowbray is eager to trim the Celtic squad, not only to allow fringe players to find first-team football elsewhere, but to free up wages that can be made available to new recruits. However, he insisted yesterday that his aim is to “balance” the financial and football aspirations.

So while 23-year-old Verkhovstov, who trained with Celtic yesterday at their Lennoxtown complex after arriving from Belarus on Sunday, could conclude a deal that sees the 12-times capped centre back move from Naftan Novopolotsk, Mowbray is in no mood to offload players with the Clydesdale Bank Premier League championship still a potential prize.

Numerous suitors are keen on his players, notably Aiden McGeady, who was linked with Everton on Sunday, and Arthur Boruc, the Poland goalkeeper, who is of interest to Tottenham Hotspur. Gary Caldwell is also a signing target for Gordon Strachan, the man who took him to Celtic Park and is now Barry Robson, Scott McDonald, Paul Caddis and Chris Killen are also reported to interest several English sides.

Mowbray said yesterday, however: “It’s a wait-and-see scenario. It’s about balancing your squad, and balancing what comes in as opposed to what might go out.

“We have to make sure we don’t leave any gaping holes in the squad and that all areas are covered for injuries or fatigue or suspension. There will be inquiries for some of our players, of course. But we will decide when the other people come in if we let them go out or not.”

Mowbray has just purchased Ki Sung Yueng, the South Korea midfield player, for £2 million from FC Seoul and Verkhovtsov hopes that he will be next. The Belarus defender said: “I’m confident the deal will go through. I’ll need a work visa, but I’m sure it will be OK.”

The area in his team that Mowbray is most keen to improve is central defence. Caldwell is in the last six months of his contract and has not signed a new deal, prompting the belief that Celtic will try to obtain a fee for him now. That is why Mowbray is also assessing Matthew Kilgallon, Sheffield United’s central defender, whose situation mirrors Caldwell’s in that the 25-year-old is free to sign a pre-contract agreement from Friday, and the Coca-Cola Championship club may also opt to receive some compensation now.

Verkhovstov caught Celtic’s eye when he played for his country in their World Cup qualifying ties with England. He will train this week with Celtic’s squad before the Old Firm derby but would not be eligible to play against Rangers even if a deal went through on January 1.

“I’m delighted to be here and I hope everything will go well this week,” he said. “I want to play for Celtic and I believe I can make a difference. I’m strong in the air and two-footed. This is the chance of my life — and I want to sign for Celtic as quickly as possible.

“I know Celtic are one of the two biggest teams in Scotland and they always play in Europe. It is my dream to play for them. I am looking forward to meeting the players and hearing about the club’s plans for the future.

Verkhovtsov is rumoured to be attracting interest from clubs in Russia, Germany and Ukraine but said: “Celtic are my first choice.”

Mowbray also wants to acquire, Olivier Giroud, the striker from Tours, the French club, but has also stated an interest in Florin Costea, a 24-year-old Romania striker rated at £2 million by his club, Universitatea Craiova.

In addition, Lech Poznan, of Poland, have asked Celtic to make their bid for Semir Stilic, a long-time midfield target. Stilic is a Bosnian valued at £1.5 million.

“What we hope to do in January is add players to help the squad and to help the existing players and not necessarily replace them,” Mowbray said. “We have been working very hard in the last few months to identify footballers and areas of the team which need strengthening and that continues, but there are no guarantees that we will bring in anyone other than Ki.”

Source:timesonline.co.uk/