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Armenian Ministry of Energy: By October 2014 Armenia will consider and approve a new indicative balance for duty-free supplies of Russian petroleum derivatives in 2015

  • by Alexandr Avanesov

  • Wednesday, July 16, 16:01

  By October 2014 Armenia will consider and approve a new indicative balance for duty-free supplies of Russian petroleum derivatives in 2015, Armenian Deputy Minister of Energy and Natural Resources Iosif Isayan says in an interview to ArmInfo. 

He says that the indicative balance for each year is to be approved by October of the previous year. The year 2014 was an exception, when the indicative balance was considered and approved by late 2013, because the agreement with the Russian Federation was signed on December 2. The document was approved by the Russian Energy Ministry, Armenian Ministry of Energy and Natural Resources and the Russian Ministry of Economic Development. Isayan says that additional oil derivatives may also be supplied but they will not be tax-exempt. Isayan stresses the importance of accurateness in determining the needs for petroleum derivatives. He says that for the moment it is the only problem, because neither the Statistical Service nor the State Traffic Inspectorate nor any other structures tackled that problem. For 2014 the quota of supplies is as follows: fuel oil - 45 tons, jet engine fuel - 47 thsd tons, diesel fuel - 144 thsd tons, oil tar for production of bitumen - 25 thsd tons, petrol - 136 thsd tons, lubricating oils - 390 tons. The project operator is Rosneft. The deputy minister says that the agreement will allow reducing the prices of oil derivatives in the republic's domestic market by 10-15%, which will have a positive effect on the whole economy of Armenia. 

To recall, on June 30 Russian President Vladimir Putin ratified a Law on ratification of the Russian- Armenian intergovernmental agreement on cooperation in supplies of natural gas, oil derivatives and rough diamonds to Armenia. Under the agreement, Russia levies no export customs duties from the domestic consumption amount of oil derivatives, natural gas and rough diamonds fixed in the indicative balances. In the meantime, the duty-free commodities supplied to Armenia from Russia cannot be re-exported to the third countries. In accordance with the agreement, the competent bodies of the parties coordinate the amount and nomenclature of domestic consumption of petroleum derivatives and natural gas in Armenia for the followingcalendar year. 

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