Russia approves plan for pipeline bypassing Belarus

...go instead to the country's own Baltic Sea port of Primorsk.

Russia's pipeline monopoly Transneft suggested building a pipeline spur to Primorsk after a row in January with the former Soviet neighbour that disrupted oil exports flowing to Europe across Belarus territory.

On Monday, Transneft reiterated that the new link, which would run on Russian territory to Primorsk and eventually pump one million barrels per day, could be completed next year.

"We are starting the feasibility study and hope to launch the new pipeline in 18 months," Transneft's vice-president Sergei Grigoryev told Reuters.

The project will boost shipments from Primorsk to 2.5 million barrels per day from the current 1.5 million bpd, strengthening its position as Russia's top oil export outlet.

It may lead to a reduction or stoppage of shipments now going through the Druzhba (Friendship) pipeline to Germany, Poland, Slovakia and the Czech Republic via Belarus.

Some analysts have said Druzhba could remain idle after the spur to Primorsk is built, given that Russia has in the past halted supplies to Latvia's Ventspils and Lithuania's Butinge.

The dispute with Belarus briefly cut Russian supplies along the Druzhba pipeline to Europe in January, following a decision by Belarus to impose a transit duty on oil crossing its soil.

Moscow's dispute with Minsk unnerved Europe, which gets a tenth of its oil via Druzhba, and tarnished Russia's image as a reliable supplier.

[MOSCOW/Reuters/Finance.cz]