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Belarus, Russia: Minsk, Moscow Agree on 3.7 Percent Oil Transit Tariff Hike to Offset Contamination Losses

1 MIN READAug 7, 2019 | 16:12 GMT

What Happened: Belarus and Russia have agreed to raise the oil transit tariff through the Druzhba pipeline system by 3.7 percent to compensate for losses from crude contamination earlier this year, RFE/RL reported Aug. 6.

Why It Matters: The 3.7 percent increase falls well short of the 23 percent that Belarus demanded as compensation for reduced oil flows earlier because of the contamination issue. Russia initially suggested a single compensation payment for affected companies but agreed to the tariff hike to help Belarus recover lost revenue.

Background: Russia and Belarus previously disagreed on the level of oil transit tariffs after Moscow adjusted its oil customs framework, resulting in an increased cost of crude imports for Belarus.

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