OREANDA-NEWS. The decision of the Russian government on termination of the agreement on transportation of Azerbaijani oil through the territory of Russia, dated January 18, 1996, is not a political but an economic issue.

Under the agreement, which came into effect on February 14, 1996, in case one party does not take the initiative to suspend the agreement, it is automatically extended for another year. According to this paragraph, Russia's decision is fully consistent with the terms of the document. In the case of warning the opposite side on termination of the agreement six months prior to suspension, it is no longer active from January 1st next year.

This issue was not a surprise to SOCAR. Both sides have raised several issues at various times which have not been resolved, like consistent quality of Azerbaijani oil during transportation through the territory of Russia and its storage at the Novorossiysk port, oil quality bank, increasing the volume of oil transportation, the rate and mechanisms of its change.

The decision of the Russian government will have no negative impact on the supply of Azerbaijani oil to the world markets. Azerbaijan has established a reliable system of oil and gas pipelines and their diversification in a short term.