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Transneft makes statement on termination of transportation of Azerbaijani oil through Russian territory

15 May 2013 14:21 (UTC +04:00)

According to statement, transportation of Azerbaijani oil through Russian territory was realized on the basis of the agreement, signed between the two countries on January 18, 1996.

The agreement considered transportation of Azerbaijani oil not less than 5 million tonnes: ‘Since 2002 up to date, the volume was higher 4 mln tonnes only in 2005-2006; other annual indicators made 1.39 mln tonnes in 2008 and 2.77 mln tonnes in 2004’.

Transneft company says that in 2012, about 2 mln tonnes Azeri oil was transported through Russian territory: ‘Order for 2013 makes 1.8 mln tonnes. 570.5 tonnes Azeri oil was transported In Q1 of this year, down 13% from a year ago’.

Azerbaijani-Russian intergovernmental agreement determined transit fee at $15.67 per 1 tonne: ‘In 2012, oil transportation fee of Azerbaijan totaled $47 million. Therefore, Baku-Novorossiysk route is not profitable for Transneft. The company has several times tried to settle the situation created within the cooperation with the Ministries of Foreign Affairs and Energy through negotiations, but these attempts had resulted in failure. SOCAR avoided constructive dialogue’.

Finally, Transneft declares that termination of the agreement is not a legal basis for suspension of transportation of Azeri oil by Baku-Novorossiysk pipeline: ‘Relevant agreement is valid between the economic subjects and transport tariffs will be determined by the Russian Federal Tariff Service.

Note that, Russian government passed a decision on termination of the agreement, signed with Azerbaijan on January 18, 1996, on the transit of Azerbaijani oil through Russia. The decision was signed by Russia’s Prime Minister Dmitry Medvedev on May 5 and published yesterday.

Besides, the Ministry of Foreign Affairs of Russia has been tasked to inform the Azerbaijani side in this regard.

Remind that, Azerbaijani oil was transported via the Baku-Novorossiysk pipeline.

Representative of Russia’s Transneft company Igor Dyomin said that, in the past 5 years official Baku did not fulfill terms of the intergovernmental agreement, signed between Russia and Azerbaijan, on Transit of Azerbaijani oil through Russian territory and transported oil 2 times less than the number considered in the document.

To him, according to terms of the agreement, though Azerbaijan should transport 5 mln tonnes of oil per year, in fact the country transported 2 mln tonnes: ‘The incomes from transit did not meet the expenses for maintenance of Transneft oil pipeline in a required technological situation. At the same time, Transneft could not change the parameters of tariffs, considered in the agreement. Because the tariff parameters were determined under the intergovernmental agreement. From next year, Transneft company will transport Azerbaijani oil on the basis of commercial contract.