DUSHANBE, May 5, 2013, Asia-Plus  -- A government-to-government agreement between Tajikistan and Russia on duty-free Russian oil product deliveries to Tajikistan has reportedly passed through all internal procedures within the Government of Tajikistan.

An official source at the Tajik MFA says the Tajik Government endorsed the agreement on April 29 and a copy of Tajik government’s decree on endorsement of the agreement has already been sent for consideration to the Government of the Russian Federation.

The Tajik side expects the Russian side to ratify the agreement in the near future and after that it will take an effect, the source noted.

We will recall that Tajikistan was exempted from paying Russian tariffs on oil and gas exports from 1995-2010 and Russia cancelled Tajikistan’s tax exemption on May 1, 2010 that resulted in gasoline prices rising in the country.  A sudden spike was reported in May 2011, when export duty for Russian gasoline rose 44 percent as compared with April.

On October 5 last year, the Ministry of Energy and Industries of Tajikistan and the Ministry of Energy of the Russian Federation signed a memorandum on the conditions for the delivery of Russian oil products to Tajikistan.

Tajik Minister of Energy and Industries Gul Sherali and Russian Minister of Energy Alexander Novak signed an agreement on duty-free Russian oil product deliveries to Tajikistan in Moscow on February 6, 2013.

Under this agreement, the sides consider and endorse the indicative fuel balance for the next calendar before October 1 of each year.  Fuels delivered in addition to the indicative fuel balance will be liable to export duty.

Russian oil products delivered to Tajikistan in the volumes not exceeding those agreed on indicative balance are not subject to re-export to the third countries.  This ban also applies to Russian oil products delivered to Tajikistan from other member nations of the Customs Union.

Under the indicative fuel balance endorsed for 2013, Russia will deliver one million tons of oil products with 70 percent of them being gasoline and diesel fuel, free of duty to Tajikistan this year.

According to the statistical data from the Customs Service under the Government of Tajikistan, 25,900 tons of gasoline have been delivered to Tajikistan over the first three months of this year, which was 28,600 tons fewer than in the same period last year.

Over the report period, Russia has accounted for 38.1 of Tajikistan’s fuel imports.