Belarus 'agrees Russian oil deal'
January 10, 2007
Belarus says it has found a compromise deal in an oil row with Russia that had threatened European crude supplies.
The deal was reached during a "lengthy" telephone call between Russian leader Vladimir Putin and Belarus President Alexander Lukashenko, Minsk claimed.
The president's office said papers allowing the oil flow to resume through the Druzhba pipeline - which crosses Belarus - would be signed by Friday.
The Kremlin refused to confirm a deal, but did say the two sides had spoken.
It added more information would be published later on Wednesday.
Russia closed the pipeline on Monday after it accused Belarus of stealing oil supplies.
Pressure
"The prime ministers of Belarus and Russia were ordered to work out concrete proposals within two days for resolution of all problem questions," a statement from Mr Lukashenko's office said.
His office added that the proposals needed to be submitted for review by the heads of state by Friday, 12 January.
News of the deal followed reports that Russia had upped the pressure on Belarus to reach a deal.
According to news agencies, long queues of cars had formed at the Russian border with Belarus after Moscow imposed new restrictions requiring Belarusian drivers to apply for a temporary vehicle entry certificate.
Meanwhile, local newspapers claimed that Russia had threatened to impose duties on all Belarusian imports unless a deal was agreed.
Russia's decision to shutdown the Druzhba - or Friendship - pipeline sparked consternation across Europe.
German chancellor and current European Union president Angela Merkel denounced the move as unacceptable and one that "destroyed trust" in Russia as an energy supplier.
Other member countries feared that oil supplies could run short as the Druzhba shutdown effectively halted shipments to Poland, Germany and beyond.
History
The dispute was sparked when Russia forced Minsk to grudgingly accept a doubling in the price of gas supplies.
In retaliation, Belarus imposed a new tax on Russian oil shipments passing through the country. Russia has refused to pay the duties saying they are illegal.
On Monday the conflict came to a head when Russian state-owned pipeline firm Transneft closed the Druzhba pipe, saying Belarus had been siphoning off oil supplies as payment in kind for the unpaid duties.
The 2,500-mile-long pipeline has the capacity to ship more than 1.2 million barrels a day to eastern and central Europe and typically works at close to full capacity.
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