Belarusian oil refineries have begun processing tolling crude supplied from Russia. In the fourth quarter, they are moving into profitable operation. The head of the administration of Alyaksandr Lukashenka, Dzmitry Krutoi, said this in an interview with Belarusian state television.
“All agreements on the oil market have already been signed, tolling crude has begun to be processed at our two oil refineries. Oil products are being sent back to Russia, some are sold on export markets, and some are consumed domestically. Therefore, under this arrangement, from the fourth quarter our two plants are reaching a stable profit margin exactly under the scheme agreed by the energy ministries of the two countries,” he said.
According to him, this scheme ensures a profitability of 7–8%. This was the figure mentioned earlier this year by Alyaksandr Lukashenka when speaking in the Federation Council of Russia.
“We are absolutely not profiting excessively, as the president instructed: 7–8% profitability for our refineries, taking into account the major investment programme implemented in past years and the need to repay the relevant credit resources to banks, will be sufficient for us. These revenue flows are in place, so our oil refining sector, I believe, feels confident and comfortable,” Krutoi added.
He also said that negotiations on the price of gas for Belarus are continuing, with options for three-year and five-year contracts under discussion.
“It will in any case be an agreement between the presidents. Indeed, there are proposals for a three-year contract and for a five-year contract. I would rather not get ahead of things here. In any case, these will be favourable conditions that will allow us to maintain competitive electricity tariffs for our industrial consumers and for our population — meaning those generating capacities that use natural gas,” he said.
