Belarus’ environmental tax on oil transit complicates Transneft’s operations
<p> MINSK, Sep 1 - PrimePress. The introduction of the environmental tax on the transit of oil and oil products by Belarus complicates Transneft’s Zapad-Transnefteprodukt operations in the Belarusian market, reads the statement by Russian Transneft PJSC addressed to the Ministry of Energy of the Russian Federation. </p> <p> </p> <p> According to Transneft, the operating conditions of Zapad-Transnefteprodukt have deteriorated significantly this year after Belarus imposed an additional environmental tax on the transit of oil and oil products and increased the profit tax rate from 18% to 50% for organizations that transport oil and oil products through the territory of Belarus (presidential decree No.9 of January 10, 2020). </p> <p> </p> <p> This will be a matter of discussion at the upcoming meeting of the high-level group of the Union State government. </p> <p> </p> <p> On January 1, 2020, Belarus introduced an environmental tax on the transit of oil and oil products across the country trough main trunk lines (presidential decree No.9 of January 10, 2020 published on the National Legal Internet Portal on January 14). The tax is to be paid by the pipeline operators. </p> <p> The environmental tax rate is set at Br0.35 ($0.165 at the rate of the National Bank of Belarus) for the transportation of one metric ton of oil and oil products per 100 km. The tax will be paid on a quarterly basis. The decree sets the 50% tax rate for the organizations engaged in the transportation of oil and oil products through Belarus. </p> <p> </p> <p> The decree applies to Belarus’ resident companies engaged in transiting oil and petroleum products through the country, particularly Gomeltransneft Druzhba and Zapad-Transnefteprodukt (part of Russian Transnefteprodukt). According to the Ministry of Finance, Belarus will earn Br210 million ($79.1 million at the rate of the National Bank of Belarus, Br2.6548/$1) from the environmental tax on oil and oil products transit and an increase in the profit tax rate for pipeline operators in 2020. </p> <p> </p> <p> The antimonopoly agencies of Belarus and Russia failed to reach an agreement on January 13, 2020 on raising tariffs for the transit of Russian oil through the Belarusian territory. The Federal Antimonopoly Service of Russia said in mid-December that Belarus proposed raising the oil transportation tariff in 2020 by 16.6%. Under the previous agreements with Russia, Belarus raised the tariff for oil transportation through the Belarusian section of the Druzhba trunk pipeline by 3.7% since September 1. </p> <p> </p> <p> In recent years, the transit of Russian oil through Belarus totaled around 50 million tons per year. The transit decreased by 6.4 million tons from the plan of 48 million tons in 2019. End </p>
2020-09-02
Primepress
Belarus’ environmental tax on oil transit complicates Transneft’s operations
MINSK, Sep 1 - PrimePress. The introduction of the environmental tax on the transit of oil and oil products by Belarus complicates Transneft’s Zapad-Transnefteprodukt operations in the Belarusian market, reads the statement by Russian Transneft PJSC addressed to the Ministry of Energy of the Russian Federation.
According to Transneft, the operating conditions of Zapad-Transnefteprodukt have deteriorated significantly this year after Belarus imposed an additional environmental tax on the transit of oil and oil products and increased the profit tax rate from 18% to 50% for organizations that transport oil and oil products through the territory of Belarus (presidential decree No.9 of January 10, 2020).
This will be a matter of discussion at the upcoming meeting of the high-level group of the Union State government.
On January 1, 2020, Belarus introduced an environmental tax on the transit of oil and oil products across the country trough main trunk lines (presidential decree No.9 of January 10, 2020 published on the National Legal Internet Portal on January 14). The tax is to be paid by the pipeline operators.
The environmental tax rate is set at Br0.35 ($0.165 at the rate of the National Bank of Belarus) for the transportation of one metric ton of oil and oil products per 100 km. The tax will be paid on a quarterly basis. The decree sets the 50% tax rate for the organizations engaged in the transportation of oil and oil products through Belarus.
The decree applies to Belarus’ resident companies engaged in transiting oil and petroleum products through the country, particularly Gomeltransneft Druzhba and Zapad-Transnefteprodukt (part of Russian Transnefteprodukt). According to the Ministry of Finance, Belarus will earn Br210 million ($79.1 million at the rate of the National Bank of Belarus, Br2.6548/$1) from the environmental tax on oil and oil products transit and an increase in the profit tax rate for pipeline operators in 2020.
The antimonopoly agencies of Belarus and Russia failed to reach an agreement on January 13, 2020 on raising tariffs for the transit of Russian oil through the Belarusian territory. The Federal Antimonopoly Service of Russia said in mid-December that Belarus proposed raising the oil transportation tariff in 2020 by 16.6%. Under the previous agreements with Russia, Belarus raised the tariff for oil transportation through the Belarusian section of the Druzhba trunk pipeline by 3.7% since September 1.
In recent years, the transit of Russian oil through Belarus totaled around 50 million tons per year. The transit decreased by 6.4 million tons from the plan of 48 million tons in 2019. End