Europe > Eastern Europe > Belarus > Belarus is ready to supply 6.44 million tons of motor fuels to Russia in 2013

Belarus: Belarus is ready to supply 6.44 million tons of motor fuels to Russia in 2013

2012/12/27

Belarus is ready to supply 6.44 million tons of gasoline and diesel fuel to Russia in 2013 provided the sales are profitable, reported the PRIME Business News Agency with reference to a source in the Belarusian government, BelaPAN said.

According to the source, Russia is ready to supply 18.5 million tons of crude oil to Belarus next year in exchange for 3.3 million tons of Belarusian petroleum products and Minsk has agreed to these conditions.

Belarus offers to supply 2.1 million tons of high-octane gasolines, 4,057,000 tons of Euro-4 standard diesel fuel and 283,000 tons of Euro-5 standard diesel fuel, but on the condition that the sales should be profitable, the source said. “The Russian side’s requirement that petroleum products be sold at the St. Petersburg exchange at the closing price of the previous trading day does not in fact make this possible,” the source said, noting that Belarus purchases Russian crude oil at world market prices.

Alyaksandr Lukashenka, who met with President Vladimir Putin on December 19, insisted Friday that Russia agreed to supply 23 million tons of crude oil to Belarus in 2013.

“We held talks with Russia and they offered 18.5 million tons while we wanted 23 million tons, but we and the Russians have agreed on the supply of 23 million tons of oil,” the Belarusian leader said, speaking to students and faculty at Belarusian National University of Informatics and Electronic Engineering.

“We’ll receive the oil without a problem,” he said, noting that Belarus had “found where to take oil” when there was a shortage of Russian oil, and imported oil from Venezuela and Azerbaijan. “But we have by now agreed with Russia,” he added.

Before this month, Mr. Lukashenka pointed out that Belarus insisted on exactly 23 million tons because the Belarusian refineries can annually refine this amount thanks to their modernization.

According to him, Russia would agree to supply 23 million tons in exchange for high-octane gasoline. If Russia pays an acceptable price, as it does at present, “we’ll supply as much gasoline as they want,” he said. “But this runs counter to the spirit of the Common Economic Zone and the Eurasian Union that we are establishing. There should be the freedom of movement of goods.”

Belarus and Russia agreed in late 2011 that a total of $21.5 million tons of Russian crude would be supplied by pipeline to Belarus in 2012 – 3.5 million tons additional than in 2011 – with the possibility of supplying up to three million tons additional by rail. Belarus made a commitment to supply Russia with 5.8 million tons of high-quality petroleum products in 2012, including 2.1 million tons of gasoline, 3.5 million tons of diesel fuel and 0.2 million tons of aviation kerosene, but it reportedly supplied only 144,300 tons of petroleum products in the first eight months of the year.  

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