Russian federal tariff service offers to establish new rates on Baku-Novorossisk pipeline

The Russian Federal Tariff Service offers to establish new prices for transportation of oil via the Baku-Novorossiysk oil pipeline at 453.95 rubles (about $13.00 at the current rate) per 1 ton, reported the service.

The new price is based on the new commercial agreement for oil pumping via Russia signed between Transneft and Azerbaijan SOCAR.

Transneft does not disclose the agreement on the volume of Azerbaijani oil pumping.

ITAR-TACC earlier reported that in May 2013 the intergovernmental agreement between Russia and Azerbaijan on transit of Azerbaijani oil via Russia was terminated by the decree of the Russian Premier Dmitri Medvedev.

During the past five years Azerbaijan failed to meet the conditions of the intergovernmental agreement and transited twice less oil, than it was stipulated by the agreement. The intergovernmental agreement stipulated pumping of 5 million tons of Azerbaijani oil, but the actual volume did not exceed 2 million tons a year. In 2013 transit of Azerbaijani oil via Russia totaled 1.7 million tons.

Transneft earlier said that with the current volume of pumping 1.5 million tons a year the price could be 720 rubles per 1 ton, with the volume of pumping 1.8 million tons – 700 rubles, 5 million tons – less than 400 rubles per 1 ton. The previous price was $15.67 per 1 ton, reported ITAR-TACC.—0--