BELARUS NEWS AND ANALYSIS

DATE:

30/12/2006

Russian oil duty said to threaten stalling Belarus refineries

MINSK. Dec 30 (Interfax-West) - Russia's newly-introduced export duty on crude oil means Belarussian oil refineries are likely to come to a standstill after using up their remnants of crude in January, Belneftekhim petrochemical company chairman Alexander Borovsky said on Saturday.

"If this happens, Belarussian refineries will sustain losses of tens of million of dollars, and we have decided to suspend earlier agreements with Russian oil companies on oil imports," he told reporters in Minsk.

As a result, the Belarussian refineries would have to scrap a plan to refine 1.5 million tonnes of oil in January, according to Borovsky.

Halting the refineries would cause problems to Belarus' chemical industry and a shortage of oil products in the country, he added.

"Today we are calling a conference at which we will discuss the possibility of buying raw materials for Belarussian chemical plants abroad and the possibility of buying oil products abroad," he said.

Russian-Belarussian talks on export duties for oil products might resume before January 17, Borovsky said. Meanwhile, an export duty of $180.7 per tonne would be in effect at least throughout January, he said.

"Whereas there are still negotiations under way on gas and there is hope for a favorable result, it's all a fait accompli as regards oil," Borovsky said. as

Source:

http://www.interfax.ru/e/B/0/28.html?id_issue=11656361