MINSK—Belarus said on Thursday its key ally Russia had violated an agreement on unifying their states by saying it would impose full duties on oil exports to Belarus.
Russia announced earlier this week it would end the era of cheap oil for Belarus from 2007, the latest sign of a growing rift between Moscow and Minsk.
Belarussian President Alexander Lukashenko is isolated by the West, which accuses him of abusing human rights and media freedoms. He has relied heavily on Russia for political and economic support but relations have soured.
Moscow and Minsk are already arguing over gas prices. Russian gas export monopoly Gazprom has threatened to cut supplies to Belarus from January unless it agrees to cede control of its pipelines.
The imposition of oil duties was a fresh blow.
"We think that introduction of custom duties violates a number of existing agreements which set a regime of free trade without exceptions or limits between Russia and Belarus," said Andrei Popov, a spokesman for the foreign ministry.
He declined to say if Belarus planned any retaliation. Russia and Belarus formed a free trade zone and in 1997 they signed an agreement to unify their two states. But few concrete steps have been taken.
Russian crude oil exports to Belarus and Kazakhstan have been exempt from export duties. Russia has not said it will impose duties on Kazakhstan, itself a rising oil producer.
But Russian President Vladimir Putin has said Moscow was losing billions of dollars every year by allowing its firms to send oil to refineries in Belarus, which were then re-exporting refined products to European markets.
The Belarussian economy is heavily dependent on cheap gas and other subsidies from Russia and the impact of Moscow's latest stance could be strong.
"Considering the role of oil products in our gross domestic product and our budget we should speak not only about serious economic but also unpleasant political consequences which could come for the Belarussian government from next year," said Leonid Zaiko, a head of independent think-tank Strategy.
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