Russia offers transit price for Azerbaijani oil

Russia Federal Tariff Service has offered to set the price of the oil delivered through Baku-Novorossiysk pipeline at 453,95 rubles (approximately $13 or AZN10) per tonne, APA-Economics reports quoting Russian media.The new tariff can come into force in accordance with the new contract signed between Russia’s Transneft company and the State Oil Company of Azerbaijan Republic (SOCAR) on the delivery of Azerbaijani oil through Russia.Russia’s Transneft company has not publicized the terms and tariffs of the contract signed on the delivery of Azerbaijani oil through Russia. SOCAR has not publicized the volume and tariff of the oil, either, saying that the agreement on the oil delivery is favorable for both sides.According to the interstate agreement signed between Azerbaijan and Russia, Russia’s Transneft company was to import 5 million tonnes of Azerbaijani oil. Actually, the annual volume of the raw oil exported by SOCAR to Russia was not more than 2 million tonnes. 1.7 million tonnes of Azerbaijani oil was transported to Russia through Baku-Novorossiysk pipeline last year. Earlier, the Russian company said if the annual volume of the oil to be delivered through Baku-Novorossiysk pipeline is 1.5 million tonnes, the tariff will be 720 rubles per tonne, if the volume is 1.8 million tonnes, the tariff will be 700 rubles per tonne, if the volume if 5 million tonnes, the tariff will be 400 rubles per tonne. According to the previous interstate contract on oil delivery, the price was set at $16 per tonne.ANN.Az