The Belarusian government expects long-term contracts for alternative oil - Krutoy

08/05/20200 views

The Government of Belarus expects to conclude long-term contracts for the supply of oil alternative to Russian oil. This was announced today to journalists by First Deputy Prime Minister Dmitry Krutoy, as reported by a BELTA correspondent.

“Regarding the financial terms, each delivery is carefully considered. I hope that once we resolve all technical issues, we will be able to select the most optimal options from those available to us today and agree on long-term contracts,” said Dmitry Krutoy.

He noted that with the current low oil prices, Belarus's losses from the tax manoeuvre in the Russian Federation are no longer as significant in absolute terms as they were when the barrel price was $60. "Nevertheless, the issue of alternative oil, at the President's request, will remain a constant on our oil agenda. Work with all countries from which we have already purchased oil (Azerbaijani, Norwegian), and with our new partners such as Saudi Arabia and the USA, will continue. We will, of course, strive to achieve the most favourable terms for these supplies," he stressed.

The First Deputy Prime Minister pointed out that spot purchases, which have been ongoing for four months, differ in their financial, economic, and logistical conditions from those that can be achieved under long-term contracts. Furthermore, there is a technical aspect related to the adaptation of oil refineries to alternative oil in terms of its characteristics.

Answering a question about the supply of American oil, the First Deputy Prime Minister confirmed that it is possible through Poland. He noted that work on alternative supplies is being conducted with all countries, including with Polish colleagues – at the level of foreign ministers, finance ministers, "Belneftekhim" and its affiliated organisations. However, according to him, contacting at the departmental level is currently more difficult due to coronavirus restrictions. "I think that once the quarantine in Poland is lifted, this issue will be discussed more actively," noted Dmitry Krutoy.

As reported, this year Belarus purchased Norwegian and Azerbaijani oil for its refineries, transshipped through the ports of Klaipėda and Odesa, respectively. On May 11, the first batch of oil from the national oil company of Saudi Arabia, Saudi Aramco, is expected at the port of Klaipėda – 80 thousand tonnes.