Russia to Cut Oil Supplies to Belarus

Russia plans to cut oil supplies to Belarus from 4.5 to 4 million tons in the first quarter after the parties failed to find a solution to the gas dispute.

The Ministry of Energy of Russia transferred the new delivery schedule to Belarus on December 28, 2016. The Belarusian side expressed its dissatisfaction to Deputy Prime Minister Arkady Dvorkovich concerning this approach.

“If this level of supply is maintained, instead of the projected 18 million tons for the year, Belarus can only expect 16 million,” they said. The Ministry of Energy made no comment.

With the reduction of deliveries, Moscow wants to exert pressure on Minsk to make her repay the debt for gas at a rate of more than 400 million dollars.

Said debts have accumulated since January 2016, when Belarus demanded a reduction on raw material costs and unilaterally decided to pay less. Moscow linked the gas issue with the supply of oil, reducing it from the promised 5.3 million tons in the first quarter to 3.5 million tons, and in October-December to 3 million.

It was assumed that by the end of 2016, the parties would reach an agreement- and they were close to a compromise. In this regard, the oil supply in the first quarter should have been increased to 4.5 million tons. Moscow agreed to provide a grant through the enrollment of customs duties for Russian oil to the budget of Belarus, which was, in turn, to repay the gas debt. However, Minsk asked for additional concessions, and as a result, the countries have not yet come to the expected agreement.

Dimitri Dolaberidze