According to the press service, "the Russian side actually ignored the arguments stated by the Belarusian side as well as the calculations." Nonetheless both delegations "expressed readiness to continue talks."

Belarus buys about 20 million metric tons of Russian oil a year, but consumes only about one quarter of that. The rest is processed and exported to the West.

Belarus enjoyed significant discounts on Russian oil imports in 2009, and is seeking a similar deal this year. The two sides, however, failed to clinch a deal for 2010 before the end of 2009.

Minsk insists that Moscow supply duty-free oil not only for Belarus' domestic consumption but also for all Russian crude supplied to the country.