Russian "Transneft" to renegotiate agreement with Azerbaijan

The Russian company "Transneft" has initiated the renegotiation of an
intergovernmental agreement with Azerbaijan, "Vedomosti" reports,
citing a government source, APA reports.

Baku is proposing to reduce the pumping via the Baku-Novorossiysk
pipeline by 30-35% and amount to 3-3.5 million tones. According to an
agreement reached in 1996, Azerbaijan was to transfer to the Russian
pipe 5 million tons a year. However, it was reported that Azerbaijan
does not fulfill the obligation.

As a result, the pipe is half empty and running at the limit of
profitability. Azerbaijan agrees to reduce the quota, but in return
requires a lower rate, that does not suit the Russian company.