Russia terminates oil transit agreement with Azerbaijan

PanARMENIAN.Net - Russia and Azerbaijan will terminate the agreement on the transit of Azerbaijani oil through Russia via the Baku-Novorossiysk pipeline, which operated since 1996. The relevant decree was signed by Russian Prime Minister Dmitry Medvedev on May 5, a source familiar with the text of the document told Prime news agency on May 14, Azernews said.

The Foreign Ministry was instructed to inform Azerbaijan about the termination of the agreement on the transit of Azerbaijani oil through the territory of Russia, which was concluded in January 1996. This bilateral Russian-Azerbaijani intergovernmental agreement on the transit of Azerbaijani oil via the Baku-Novorossiysk pipeline envisages transportation of 5 million tons of oil per year at the rate of $15.67 per one ton of oil transit.

Spokesman, advisor to Transneft president Igor Demin told Prime news agency that the contract included the amount and rate which have been changed over the years. He said that Azerbaijan has failed to fulfill its obligations in pumping volumes, which were set in the agreement at the level of 5 million tons of oil a year, but in reality amounted to about 2 million tons.

He added that the parties will be able to negotiate a new tariff for the next year.