DUSHANBE, November 14, 2012, Asia-Plus – Local experts note that demanding guarantees from Tajikistan that duty-free oil products will not be re-exported to the third countries, Russia proceeds from its national interests.
The main point of Russia’s demands is that it wants benefits from duty-free oil product deliveries will apply only to Tajikistan, which would not sell them at higher prices to the third countries, Shokirjon Hakimov, deputy chairman of the National Social-Democratic Party, told Asia-Plus in an interview.
“It is well known that markets of some strategic commodities like oil products, aluminum, and tobacco are monopolized by persons close to the power-holding structures. Therefore, it cannot be ruled out that these persons want to use the agreement on duty-free oil product deliveries in their corporate interests,” said Hakimov. “This is contrary to national interests of Russia because Russia could sell its oil products, for example, to Afghanistan by itself at prices including customs duties.”
“In this case, we depend on will of the Russian side and I am sure that Tajikistan will take into consideration conditions offered by Russia,” the expert said.
According to him, Tajikistan will be forced to accept the terms offered by Russia “because embargo has been imposed on Iranian oil, which could be used to diversify Tajikistan’s fuel oil.”
Hakimov added that delay in signing of the agreement with Russia on resuming selling duty-free gasoline to Tajikistan may lead to deterioration of living conditions in Tajikistan because acute oil product shortages will result in their prices rising that, in turn, will lead to increase in prices of basic food products.
We will recall that official Dushanbe cannot guarantee that Russian duty-free gasoline will not be re-exported to the third countries.
Russia reportedly demands that Tajikistan prevent re-export of imported Russian duty-free oil products to the third countries, for example to Afghanistan; otherwise, Russia may annul the agreement and impose export duty on its oil products for Tajikistan again and reduce fuel exports to Tajikistan.
According to some sources, a meeting of Tajik and Russian representatives on preparation of a draft agreement on selling Russian duty-free oil products to Tajikistan has ended without result because of this point.
The Tajik side reportedly wants the point banning re-export of Russian duty-free oil products to the third countries to be removed from the agreement.
A memorandum on the conditions of Russian oil product deliveries to Tajikistan was signed between the Ministry of Energy and Industries of Tajikistan and the Ministry of Energy of the Russian Federation in Dushanbe on October 5. The memorandum provides for signing of the government-to-government agreement on the tax-free delivery of Russian oil products to Tajikistan.
The Russian side is reportedly ready to deliver one million tons of oil products to Tajikistan free of tax per year. According to some sources, the agreement is expected to be of indefinite duration and indicative fuel balance will be reviewed every year.
Tajikistan was exempted from paying Russian tariffs on oil and gas exports from 1995-2010 and Russia cancelled Tajikistan’s tax exemption on May 1, 2010 that resulted in gasoline prices rising in the country. A sudden spike was reported in May 2011, when export duty for Russian gasoline rose 44 percent as compared with April.
The price of one liter of 92-octane gasoline in Dushanbe has risen from 6.40 somoni in June, 2012 to 6.70 somoni, with similar prices rises in other parts of the country.
