Loses Ukraine. Minsk disputes with Moscow over oil

Теряет Украина. Минск спорит с Москвой из-за нефти

Russia and Belarus fight over oil

Russia and Belarus again argued over oil. Minsk accused Moscow of the supply of defective raw materials and restricted the export of petroleum products.

Russia and Belarus have once again argued over oil. Minsk accused Moscow of the supply of defective raw materials and restricted the export of oil products to Ukraine, Poland and the Baltic States.

Because of the sanctions Russian oil Belarus was to become the largest source of fuel for Ukraine. Minsk wants to raise tariffs for transit of Russian oil and threatens to find alternativniye sources of hydrocarbons. Корреспондент.net tells details.

 

The quarrel of Minsk and the Russian Federation

The rhetoric of the Belarusian authorities in the energy sector tightened due to the ongoing Russia’s tax maneuver – zeroing of export duties and simultaneous increase of the tax on extraction of mineral resources.

At the beginning of the year, President of Belarus Alexander Lukashenko demanded from Moscow compensation for the costs of the implementation of the tax maneuver, after which the price of Russian oil for Belarus will be equal with the world. Losses in total amount to 383 million dollars, while the price of oil in 70 dollars for barrel.

Lukashenko accuses Russia of violating the Eurasian economic community on a common, but Moscow says it is an internal matter. The parties tried to negotiate. There were meetings at the presidential level. But they in what have not resulted.

On 19 April, the company announced a sharp deterioration coming from Russian oil. In export blend Urals in the Druzhba pipeline, found concentrations of organochlorine compounds “tens of times” larger than the maximum value.

Belarus said that because of the poor quality of Russian oil broke down equipment on one of the country’s largest oil refineries.

Minsk has decided to stop supply of petroleum products – gasoline and diesel fuel – “to remedy the situation.” Belarus demands compensation in the “hundreds of millions of dollars”.

This happened on the background of the new dispute – about the cost of transit. Due to the deterioration of the environmental situation and the need to repair Minsk wants to increase the tariff by 23 percent. Moscow calls the position of Belarus are unfounded.

Transneft, which owns the Russian part of the Druzhba pipeline, he admitted that he had been repeatedly exceeded the standards on the content of the chlororganics. It is not only poisonous for people, but also spoil the equipment for the production of gasoline. How she ended up in oil – not reported.

Processed Russian oil into gasoline and diesel Belarus exports to Ukraine, the United Kingdom, the Netherlands, Poland and the Baltic States.

April 23, Minsk stopped the supply of petroleum products to other countries and said that polluted by chlorine-organic compounds of oil from Russia to enter the EU and Ukraine.

“The results of those samples which were selected at the border of Belarus and Poland, we noted that poor quality oil has already entered the territory of the EU. We also have operational information that the oil with changed characteristics is located on the territory of Ukraine”, – said the Deputy Chairman of the Belneftekhim Vadim Sizov.

In Poland also recorded a deterioration of the quality of oil flowing through the Druzhba pipeline.

Later in Belneftehima said that Belarus until the end of the year wants to start importing oil via ports of the Baltic States and Ukraine. From which countries are expected to export oil, not specified, but not from Russia.

“Either Baltic ports or Odessa, or a combination. Mozyr oil refinery is closer to Ukraine, it is quite possible that oil will go through the Ukraine. Naftan closer to the Baltic ports, respectively, it is logical to consider the ports of the Baltic sea”, – said the representative of concern Sergey Mushroom.

Buy your own: where Minsk took coal to Ukraine

He noted that we are talking about the volume of 200-300 thousand tons of oil monthly. Hryb, to Belarusian refineries may be recycled 18 varieties of oil, including oil from Azerbaijan, Saudi Arabia and Nigeria.

On 24 April, the Russian side announced that the theme of indexation of tariffs for transportation of oil from Russia through Belarus will rise to the discussion at the end of this year.

Soon Belneftekhim said that Russia started to supply oil corresponding to the technological standards, the Northern branch of the Druzhba pipeline. While at the Mozyr oil refinery comes still “infected” with Russian oil.

 

Sanctions against Ukraine

Stronger limitation of the supply of oil products from Belarus could be harmed Ukraine.

Given the restrictions announced by Moscow on April 18, which among other things relate to the supply of diesel fuel, gasoline and liquefied petroleum gas from Russia, Belarus had become the largest source of fuel for Ukraine.

Crude oil Ukraine gets mostly from Azerbaijan, but two refineries only produce two million tons of oil products per year, whereas we need more than ten.

Only in Ukraine to 2018 imported oil products for $ 5.5 billion. Of them, according to Russian customs statistics, 2.9 billion went to Russia (primarily diesel fuel).

In January-March 2019, the share of imports from Russia of oil products on the Ukrainian market accounted for more than 41 percent. More Russian oil products to Ukraine Belarus imports only.

As said Mushroom, Belarus on the background of Russian oil ban also expects to increase export of bitumen in Ukraine.

Prime Minister Vladimir Groysman said that the Ukrainian government will find a way to minimize the damage from that adopted by the Russian government ban.

“Our market is quite diversified, but it is clear that we are still dependent, for example, from Belarus. But we will find a solution to the situation was with minimal losses. This is not a simple task, but we will find a solution,” – said Groisman in the program Freedom of speech.

Oil products for Ukraine in Minsk produces on the basis of Russian oil, which, as mentioned above, will be more expensive due to the tax maneuver. Power plants theoretically enough to completely cover the deficit of petroleum products in Ukraine. But then Minsk will have to reduce shipments to other countries.

Experts, assessing the risks that may accrue to the Ukrainian market in connection with the Russian sanctions, saying that the deficit at the gas station is not worth waiting, but the prices can fluctuate to replace supplies of raw materials from other countries.

As of April 24, the price of gasoline and diesel fuel at filling stations in Ukraine increased by 30 to 60 kopecks per liter. The average price exceeded $ 29 USD.

 

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