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Minsk agrees to supply first batch of oil from Russia, at non-premium price - Belneftekhim

5 January 2020 10:48

MINSK. KAZINFORM - Belarus has agreed to supply the first batch of Russian oil at a price without a premium; in the near future, the country will receive the necessary volumes of raw materials for the non-stop operation of Belarusian refineries in January, Belneftekhim said in a statement on Saturday.

«Work on concluding contracts for the supply of hydrocarbons from the Russian Federation to the Republic of Belarus at a price excluding a premium to suppliers continues. Today, documents are being drawn up with a Russian company to pump the first batch of oil purchased at a price without a premium,» the concern noted. It clarified that «the volume of raw materials expected to be delivered in the near future, as well as the accumulated resources, will ensure the uninterrupted operation of domestic oil refineries in January 2020.»

Earlier, TASS sources reported that the problem with the supply of Russian oil arose due to the fact that Belarus asked to remove the premium to the contract price of oil.

On Monday, December 30, the Russian and Belarussian leaders had a detailed telephone conversation on oil and gas supplies to Belarus. Vladimir Putin and Alexander Lukashenko agreed that the governments of the two countries would draft interim conditions of oil and gas supplies, if economic entities fail to come to terms by January 1. Lukashenko also discussed these issues on December 31 with Russian Prime Minister Dmitry Medvedev and Russian Energy Minister Alexander Novak. On the same day, Lukashenko instructed the management of the petrochemical complex to conclude contracts for the supply of oil and work out the conditions for the supply of raw materials from the Baltic ports by rail and through the Druzhba pipeline. However, no agreements were concluded.

Then, on Friday, the Belneftekhim concern stated that Russian oil was not supplied starting on January 1, and that refinery loading was reduced to the minimum technologically permissible level. Due to this, the concern later reported that Belarus had temporarily suspended the export of oil products produced at its refineries.

Source: TASS

Keywords: Oil & Gas,