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