Belarus suspends shipment of oil products to Russia in anticipation of better prices

Belarus has suspended the shipment of oil products to Russia until the prices are favorable, BelTA learned from Deputy Prime Minister of Belarus Vladimir Semashko on 3 April.

Speaking about supplies of oil products to Russia, the Deputy Prime Minister said that there are still some minor issues caused by the reduction of the exchange rate of the Russian ruble. “Russia stays dedicated to its pricing policy. Prices are not raised, including prices for fuel. Gasoline used to cost as much as $0.90 per liter, now it costs $0.50-0.54 depending on the grade of gasoline,” he said.

“In this situation we lose roughly $100 per tonne on some varieties of gasoline when we sell it to Russia. We cannot afford it, this is why we have used the clause specified by the Eurasian Economic Union foundation treaty. If the price for oil products is lower than the price we can get in other markets, we have the right to temporarily suspend deliveries of such products,” noted Vladimir Semashko. He added that the Russian side was sympathetic about it.

“Once the situation changes and prices go up, then we will deliver,” stressed the Deputy Prime Minister.

Vladimir Semashko said that the balance for delivering oil and oil products in Q2 2015 had been signed already. Belarusian oil refineries will get 100% of the oil they need.