The Belarusian authorities are considering raising the tariff for the transit of Kazakhstani oil through the northern section of the Druzhba pipeline, according to Russian publication Kommersant. This increase would specifically affect oil destined for Europe, and the proposed tariff hike stands at 43%.
A letter outlining the proposal was sent to Russian Transneft by Gomeltransneft Druzhba, the operator responsible for the Belarusian segment of the pipeline. The suggested tariff increase for the northern branch, which runs from Unecha to Adamovo and supplies oil to Germany, would be 43%, bringing the fee to RUB 653.8 ($197.38) per ton.
The prices for the southern direction from Unecha to Brody, which supplies raw materials to Hungary, Slovakia, and the Czech Republic, could rise by 14.5%, reaching RUB 195.8 ($59.11) per ton.
The primary rationale behind the proposed tariff adjustments is to eliminate cross-financing of pumping operations on the northern line through the utilization of the southern line. If approved, both branches would have a standardized tariff of RUB 104.3 ($31.49) per 100 km. Gomeltransneft Druzhba also cites "unforeseen circumstances" such as Germany and Poland's refusal to purchase Russian oil, leading to a drastic 17-fold decline in transit volumes compared to 2022.
While Russian oil, purchased by Hungary and Slovakia, continues to be supplied through the southern line of the Druzhba pipeline, no pumping occurred in the northern section until the spring of this year. Following agreements reached last December, oil from Kazakhstan started flowing to Germany via the northern branch. Berlin hopes to replace the reduced volumes of Russian oil required by a processing plant in Sweden through these supplies.
Initial agreements stipulated monthly supplies of 100,000 tons, but pumping did not occur in the initial months, and only 20,000 tons were delivered in March. KazMunayGas subsequently increased the supplies to full capacity. In November, volumes were further raised to 154,000 tons, and a delivery of 150,000 tons is expected in December. Consequently, the total pumping volume for the year will reach 993,000 tons, falling short of the agreed-upon 1.2 mn tons.
A representative from Transneft acknowledged the negotiations but emphasized that the revision of transit tariffs on the northern line falls outside the company's jurisdiction and should be discussed with Astana (the capital of Kazakhstan). Initially, Minsk had proposed an 80% increase in tariffs for both branches.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)