Russia"s position at negotiations on a 2010...

The Customs Union between the three former Soviet states came into force on January 1, although many aspects of the project will only be finalized over the coming year.

Belarus benefited from significant discounts on Russian oil imports in 2009, and is seeking a similar deal this year. Russia says it is willing to eliminate all duties on oil supplied to Belarus for domestic consumption, but wants oil bound for European markets to be subject to duty.

"What the Russian delegation of Russia suggested at the negotiations on the terms of oil trade - that oil supplies to Belarus carry a duty throughout 2010 - practically nullifies the treaty," the Belarusian representative said of the customs deal.

Russia exported around 25 million tons of oil to Belarus last year, but only 5-6 million tons were for domestic consumption. The rest was re-exported, some after passing through one of the country"s two oil refineries.

Russian First Deputy Prime Minister Igor Sechin

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