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Belarus may be forced to abandon the export of oil through the Baltic States

Беларусь могут заставить отказаться от экспорта нефти через Прибалтику

Transneft proposes to consolidate the intergovernmental agreement commitments to export certain volumes of oil products via Russian ports.

That the Russian authorities are discussing the prospects for the redirection of export of oil products from the Baltic ports to Russian ports, told RBC sources in the oil companies. This topic will be raised at the meeting with the special representative of the President for environmental activities, environment and transport, Sergei Ivanov, RBC.

Sources in two Russian oil companies support the initiative to redirect cargo to Russian ports. According to a source close to “Rosneft”, the company “is not going to feed the ports of countries that supported European sanctions against Russia, and is ready to gradually redirect their cargo to Russian ports by 2018”. He claims that this year the company offered to acquire a stake in one of the Baltic ports “almost for nothing” under the condition to send their goods, but Rosneft refused.

Also raised the question of increasing exports of Belarusian goods through Russian ports, according to two sources close to the meeting. This is also stated in the materials of “Transneft”. The monopoly proposes to consolidate the intergovernmental agreement governing the duty-free supplies of Russian oil for processing at Belarusian oil refineries, commitments to export certain volumes of oil products via Russian ports.

Today, more than 90% export of oil products from Belarus goes in the direction of the Baltic and black sea ports of Ukraine, said a source close to one of the participants of the meeting. In 2015, Belarus transported through the Baltic States, 8.5 million tonnes of petroleum products for the first eight months of 2016 — more of 5.67 million tonnes). The volumes of the largest Lithuanian oil terminal Klaipedos Nafta to 2015 increased by 18.5 percent, to 6.42 million tonnes Klaipedos Nafta announced plans to invest around €10 million in expanding capacity of terminal in Klaipeda specifically for the Belarusian goods.

In addition, Belarus is shipping for the export of potash and nitrogen fertilizers via Lithuania.

Russia in 2016 promised to increase oil supplies to Belarus by 4.3%, from 23 million to 24 million tons in mid-June, the energy Ministry announced a reduction in the supply of almost 40% in the third quarter and a further decline in the fourth quarter. This occurred against the background of the dispute about the price of Russian gas. According to Belstat, Belarus for seven months of 2016 imported 12.7 million tons of Russian oil.

A source close to the Belarusian side, that supply petroleum products via Russian ports and logistics more expensive, as this lengthens the path. He said that this reorientation is possible provided benefits — discounts from the Railways and guaranteed access to pipeline capacity. He also believes that the change of an intergovernmental agreement involving the reorientation of Belarusian goods from the Baltic States to Russian ports, contrary to the concept of the common economic space agreements in the framework of the Union state of Russia and Belarus.

President of Belarus Alexander Lukashenko in 2012 announced its intention to redirect cargoes from the Baltic terminals in the ports of Leningrad region and Kaliningrad, but so far this has not happened.

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