The CIS Economic Court will start hearing Belarus’ suit against Russia regarding duties on oil products 7 September 2010. The decision of the court session that took place on 21-23 June was announced on 24 June, BelTA has learned.

The CIS Economic Court believes that the sides have not yet exhausted other options to resolve the conflict and recommended they should use reconciliation.

The court denied the Belarusian Economy Ministry’s three motions that had been filed earlier. In particular, the court denied the motion to prohibit Russia from levying customs duties on the oil products Belarus buys before the court pronounces its final verdict.

On 25 March 2010 the Belarusian Justice Ministry filed a suit with the CIS Economic Court requesting to assess the legality of the customs duties on the oil products and crude oil that Russia supplies to Belarus. Following a teletypogram sent by the First Deputy Director of the Federal Customs Service of Russia, as of 1 January 2010 customs duties are levied from the oil products, including petrochemical raw stock, that Russia supplies to Belarus. According to the bill of complaint, the international treaties Belarus and Russia have signed within the framework of the CIS and EurAsEC as well as bilateral treaties between Belarus and Russia provide for duty-free trade in line with free market procedures. For instance, the Belarusian-Russian intergovernmental treaty on free trade of 13 November 1992 and the Belarus-Russia protocol on introducing free market procedures without provisos or limitations of 6 January 1995 stipulate that the parties shall not use duties in the mutual trade. The only exception is crude oil, part of which is liable to an export duty in line with a special bilateral agreement. The mutual trade in other commodities shall be duty-free.

The first session of the CIS Economic Court took place on 21 April. The court decided to entertain the action of the Belarusian government against the Russian government regarding the violation of existing treaties on free trade and on the Customs Union due to Russia’s introduction of duties on the oil products it exports to Belarus.

At the second hearing on 18-19 May the CIS Economic Court dealt with matters concerning the specification of demands of the Belarusian government, the need to get a response from the Russian government, presentation of the necessary additional papers and so on. On 24 May the Belarusian Justice Ministry said that this decision contradicted regulations of the court. In line with Article 61 of the CIS Economic Court Regulations, within thirty days after legal proceedings are initiated, the court is supposed to hold an administrative session, which, among other things, has to schedule the time of the main session. Proceedings regarding the complaint of the Belarusian government were initiated on 21 April. Thus, the court had to schedule the first main session before 21 May. The decision to hold an administrative session on 22 June 2010 without scheduling the main session contradicts the regulations and unreasonably protracts court proceedings, stressed the Belarusian Justice Ministry.

On the eve of the second session the Belarusian Justice Ministry was granted access to the case papers. After reviewing them, the Ministry said that the appointment of Russian citizen Yuri Mishalchenko as the general counselor for the oil suit in the CIS Economic Court may run contrary to the principles of justice and equality of parties. According to the Ministry, the appointment formally does not contradict regulations of the Economic Court. The Justice Ministry pointed out that Yuri Mishalchenko is a citizen of one of the parties involved in the case. Yuri Mishalchenko is a professor at the Saint Petersburg State University of Economy and Finance and the North-Western Civil Service Academy under the aegis of the President of Russia. These educational institutions are directly linked with top state agencies of Russia, including the Russian Federation government. The Russian government is the defendant and a founder of the Saint Petersburg State University of Economy and Finance. In addition, following Russia President Decree No 1264 of 10 November 2006 the operation of the Saint Petersburg State University of Economy and Finance is coordinated by the Russian Civil Service Academy under the aegis of the President of Russia. The Russian government is a founder of the Academy.

The CIS Economic Court acts as the EurAsEC economic court. As from 1 July 2010 the court will also act as the court of the Customs Union of Belarus, Kazakhstan, and Russia. Parties to the CIS Economic Court Status Agreement are Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Russia and Uzbekistan.

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