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BALTIC NATIONS SEEK OIL IMPORT SOURCES

April 13, 1992

The newly independent former Soviet Baltic republics are widening their search for oil imports to make up for reduced deliveries from Russia. Estonia, Latvia, and Lithuania have shifted emphasis from appeals to Moscow toward direct deals with petroleum producing enterprises in the Commonwealth of Independent States and with other countries. Early this year, Russia agreed to deliver 70% as much fuel to the Baltic nations in 1992 as in 1991. But Russia did not meet its commitments largely

The newly independent former Soviet Baltic republics are widening their search for oil imports to make up for reduced deliveries from Russia.

Estonia, Latvia, and Lithuania have shifted emphasis from appeals to Moscow toward direct deals with petroleum producing enterprises in the Commonwealth of Independent States and with other countries.

Early this year, Russia agreed to deliver 70% as much fuel to the Baltic nations in 1992 as in 1991. But Russia did not meet its commitments largely because of payment problems, failure to issue export licenses, and its own fuel supply difficulties.

Two German firms agreed to deliver 6,000 metric tons of 93 octane gasoline to Latvia for $227/ton. Denmark's Parliament allocated about $3 million for Latvian purchase of Danish refined products.

Latvia also signed direct contracts with refineries in Russia's Komi Autonomous Republic and Bashkir Autonomous Republic. It obtained some oil from a deal with western Siberia's Nizhnevartovsk petroleum exchange.

Izvestia reported Latvian authorities have had "intensive discussions" with Arab business circles regarding possible purchase of crude and products. Latvia's minister of foreign affairs met in Copenhagen with Kuwaiti commercial interests, and Latvia's prime minister visited Egypt and Yemen to discuss oil deals.

Estonia and Russia's Komi Republic signed a 54.7 million barter agreement recently. It provided for delivery of 15,000 metric tons of Komi fuel oil, 10,000 tons of gasoline, and 10,000 tons of diesel fuel to Estonia for fish and butter in first quarter 1992.

Finland agreed to send two tanker loads/week of fuel to Tallinn, Estonia's capital.

Izvestia said during the near term Baltic nations can ease their energy crises only by numerous small deals, "But those countries will only be able to find a more reliable way of solving their fuel problems through negotiations under way with Russia."

However, some Estonian officials believe western nations must be depended upon to meet the former Soviet Baltic nation's energy and other needs during the long term.