Russian oil pipeline interruption intensifies struggle for raw materials

Overnight Sunday (January 7) the Russian pipeline monopoly Transneft cut off the Druschba pipeline—the most important pipeline between the oilfields of Western Siberia and the refineries of Europe. Germany relies on this pipeline, with its daily capacity of 2 million barrels (318 million liters), for a fifth of its requirements. Poland also relies heavily on the pipeline for its energy needs.

Behind the break in supplies is a conflict between Russia and Belarus, which transports the oil over its territory.

At the start of the year the Kremlin-controlled Gazprom company increased the price of its gas to Belarus from US$46 to US$100 per 1,000 cubic meter. Russia also introduced a tariff of US$180 per ton of oil exported to Belarus. Gazprom argued that the price increase was aimed at preventing Belarus from reselling cheaply imported Russian oil at the world price.

The regime in Minsk took revenge by imposing a transit fee of US$45 per ton for oil delivered from Russia to Europe. According to Russian sources, after Transneft refused to pay this fee Belarus responded by trying to extract oil from the pipeline. Transneft then responded by shutting off its taps.

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http://wsws.org/articles/2007/jan2007/russ-j10.shtml