Global Trade Alert

In line with a teletypogram sent by the First Deputy Director of the Federal Customs Service of Russia heads of regional customs administrations and the head of the central energy customs house are instructed to use customs duties on crude oil and certain oil products exported from Russia to Belarus as from 1 January 2010. The customs duties are specified by Russian government resolution # 1091 of 25 December 2009. At present Russian government resolution # 32 'Customs duties on the crude oil and certain oil products exported from Russia to the member-states of the Customs Union agreement' is in effect.
 
The customs administration measures used by Russia in line with the teletypogram run contrary to international agreements and the national legislation of Russia. Russia is believed to have violated the Belarus-Russia agreement on the Customs Union of 6 January 1995 (it came into force on 30 November 1995), the treaty on the Customs Union and the single economic space of 26 February 1999 (23 December 1999), the treaty on the single customs territory and the Customs Union formation of 6 October 2007 (10 October 2008).
 
Those measures are belived to have prevented normal Russian export flow of paraxylene, commercial paraffin, petrolatum, mineral wax and other products to Belarus which are vital for the normal operation of Belarusian chemical companies.
 
The source states that Russia's decision to impose customs duties on exported oil products are applied only to one Customs Union member-state. It is necessary to recall that Russia is in the process of the Customs Union creation with Belarus and Kazakhstan from 1 January 2010.