December 2, 2008

New pipeline to Europe bypasses Belarus

Since the first pipe in the Baltic Pipeline system that passes through Belarus was completed, Russia and Belarus have disagreed over terms, compensation and more. The second pipe in the system will be a bit longer, completely bypassing Belarus.

Transneft proposed the construction of a second line of the Baltic Pipeline System in January 2007, after Russia and Belarus experienced a disagreement over oil deliveries. Belarus imposed transit duties on crude oil, and Russia closed the Druzhba pipeline in response, only to reopen it later. The Russian government approved the second line in May 2007. Transneft transports 93 percent of the oil produced in Russia. The state owns 78.1 percent of the company. (Kommersant)

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