Belarus to Raise Export Duties on Oil and Oil Products March 1

On March1, 2011, Belarus will increase the duties on oil and oil products exported from Belarus outside the Customs Union. Relevant Resolution No. 235 of the Council of Ministers of 24 February 2011 will come into effect on 1 March in line with Clause 1 of Decree No. 716 of 31 December 2010 "On export customs duties", BelTA learnt from the press service of the Belarusian government.

Thus, amendments have been introduced to the Council of Ministers' Resolution No 1932 of 31 December 2010 "On establishing export customs duties on crude oil and certain types of goods produced from petroleum, and repealing of certain resolutions of the Council of Ministers."

From 1 March this year the rate of export customs duties per 1 tonne of crude oil will amount to $365, oil with sulfur content - $150.4. The customs duty on light oil (light distillates, middle distillates) will be set at $244.6 per 1 tonne. The duty on heavy petroleum products (liquid fuels, oils, waste oils) will be equal to $170.4, propane, butanes, ethylene, propylene, butylene and butadiene, other liquefied gases - $150.2, petroleum jelly, mineral waxes, and similar products - $170.4. In addition, the rate of export customs duties per 1 tonne of petroleum coke and bitumen, other residues of petroleum oils or oils obtained from bituminous minerals will be equal to $170.4, benzene, toluene, xylene - $244.6.

On 1 January 2011 Belarus got the right to import Russian oil and oil products without duties and limits. It is envisaged in the agreement on calculating and distributing customs duties (other equivalent duties, taxes and fees), which are levied on crude oil and certain derivatives that are exported from Belarus outside the Customs Union. The agreement was signed by the presidents of the Customs Union member states on 9 December 2010. The document was ratified by the House of Representatives of the National Assembly of Belarus on 21 December and approved by the Council of the Republic on 22 December 2010.

The agreement stipulates new conditions for the delivery of oil and oil products to Belarus. It has also addressed issues relating to the collection and transfer of customs duties on crude oil and certain derivatives, which are exported from Belarus to the countries outside the Customs Union. According to the agreement, the duties on exporting Belarusian crude oil will be transferred to the Belarusian budget, while the duties on exporting oil products will be transferred to the budget of the Russian Federation.