Oil flowing again after spat with Russia

? Russian oil began flowing again through a Belarusian pipeline late Wednesday, a top Belarusian oil official said, resolving a dispute between the countries that had disrupted supplies to Eastern Europe as well as to the former Soviet Republic.

Alexei Kostuchenko, general director of pipeline concern Gomeltransneft-Druzhba, said Russian oil entered the Belarusian system about 10:30 p.m. local time Wednesday, and was being pumped to Poland, Germany, Ukraine, Slovakia, the Czech Republic and Hungary. He did not give any details about the volume being moved.

The dispute, which had entered its third day, centered on Russia’s decision last month to impose a hefty duty on oil exports to Belarus, with Moscow complaining that the previous duty-free regime cost the Russian budget up to $4 billion a year in lost revenues. Belarus reaped billions in revenues by refining cheap Russia oil products and selling them at hefty profit to European markets.

Minsk – whose centrally controlled economy is heavily reliant on cheap Russian energy and duty-free trade with Russia – responded last week by slapping a $45 per ton tax on Russian oil pumped across Belarus to Europe.

After telephone talks between Russian President Vladimir Putin and Belarusian President Alexander Lukashenko, the tax was canceled Wednesday.