Energy Blast – Jan 21, 2011

At his meeting in Belarus to discuss oil supplies, Prime Minister Vladimir Putin hinted that Minsk could earn $4 billion in revenues from cut crude duties, if it agrees to pay Russia the duties it charges on its re-exports in exchange.  The PM also said Russia would sell gas at current contract prices, but would consider up to $4 billion in subsidies ‘if necessary‘.  As the pricing dispute has not been solved, Transneft has announced that it will redirect the crude oil allocated for Belarus to alternative buyers.  Russia and the US have been ‘bickering‘ over Iranian sanctions ahead of today’s meeting to discuss its nuclear program, reports Bloomberg.  Oil exports to Kyrgyzstan have had their duty dropped, which Reuters says will clear the way for Moscow to supply jet fuel to a US air base.  The British Energy Minister says that government and commercial issues ‘should be kept separate‘ as far as the BP-Rosneft deal goes: ‘It’s not the job of the government to look at every trading relationship which every company has working outside the UK.‘  The US, meanwhile, is concerned that the deal ‘may pose an unacceptable threat to US national security‘, and may hold an investigation.  A former CFO of Yukos writes in the Moscow Times today: ‘Rosneft was directly involved in the bogus bankruptcy of Yukos.‘