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Belarus bans transit of oil products, fertilisers from Lithuania - Reuters

A general view shows waste heaps at Belaruskali potash mines near the town of Soligorsk, some 130 km (81 miles) south of Minsk, August 31, 2013. Belarus said on September 19, 2013 it was ready to repatriate the head of Russian potash producer Uralkali, arrested last month to protests from Moscow, but wanted a change of ownership in the firm that would restore strong commercial links with Belarus. Some analysts have spoken of a possible re-marriage with state-owned Belaruskali. REUTERS/Vasily Fedosenko

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MOSCOW/VILNIUS, Feb 2 (Reuters) - Belarus will ban oil and chemical products from crossing its territory from Lithuania, including fertilisers, in response to Lithuania's decision to stop the transit of potash fertiliser from Belarus, the Belarusian foreign ministry said on Wednesday.

The ban comes into effect on Feb. 7, the ministry said, adding that the products in question amounted to 1.6 million tonnes a year, and were worth more than $1 billion.

Lithuania ceased transporting the potash, a major cash earner for Belarus, after the Vilnius government decided the transit goes against its national security interests. read more

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The tit-for-tat measures highlight the ongoing standoff between Belarus, which is backed by its neighbour Russia, and the West.

Poland's largest refiner PKN Orlen (PKN.WA) stands ready to redirect exports from its Lithuanian refinery to go through Poland instead of Belarus, refinery spokesperson told Reuters.

"Part of the reason why we bought a terminal near the Polish border last year was to be able to export via Poland if the political situation changes", Kristina Gendvile, the spokesperson, told Reuters.

PKN Orlen exported 1 million tonnes of oil from Lithuania to Ukraine via Belarus last year.

The oil products to Ukraine were 2% of all Lithuanian railways cargo last year, a railways spokesperson told Reuters.

Lithuanian fertilizer producer Achema, the largest natural gas consumer in the Baltics, will face "serious obstacles" from Belarus banning its exports to Ukraine, CEO Ramunas Miliauskas told BNS wire on Tuesday.

The company did not immediately respond to a request for comment on Wednesday.

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Reporting by Andrey Ostroukh in Moscow and Andrius Sytas in Vilnius; Editing by Kevin Liffey and Frank Jack Daniel

Our Standards: The Thomson Reuters Trust Principles.

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