BELARUS NEWS AND ANALYSIS

DATE:

10/12/2007

Belarus to produce 900,000 t oil/year in Venezuela

MINSK, Dec 10 (Reuters) - Belarus has begun extracting oil in Venezuela and hopes to produce 900,000 tonnes annually from next year to lessen dependence on Russian energy, the ex-Soviet state's foreign minister said on Monday.

Sergei Martynov announced the figure after President Alexander Lukashenko returned from talks in Caracas with Venezuelan leader Hugo Chavez. He said revenue from the extraction process would be used to purchase oil elsewhere.

The leaders, both accused of ruling their countries with strongarm tactics, proclaim common foreign policy aims, including a distrust of what they see as U.S. dominance of world affairs. Chavez has made two trips to Minsk, where he praised the Belarussian leader as a "brother". "Belarus has access to two deposits on Venezuelan territory. The first litres of our oil have already been produced during our president's visit," Martynov told a news conference.

"We are counting on these deposits producing 900,000 tonnes of oil per year. Agreements were also concluded for Belarus to secure access to several other deposits that will enable us to extract up to two million tonnes."

Lukashenko is accused of hounding the opposition, closing down independent media and routinely rigging elections in his country of 10 million. The United States and European Union barred him entry after saying he blatantly rigged his re-election to a third term last year.

Lukashenko denies his country violates fundamental rights, accuses his opponents of being in the pay of Western governments and says his policies of high state subsidies and benefits have spared Belarussians the upheavals of other ex-Soviet states.

Lukashenko has also quarrelled with longstanding ally Russia over steep increases in the New Year in the price of imported energy.

Martynov said it was not economically viable to ship back to Belarus oil produced in Venezuela. "The oil will be produced in the same region and proceeds from its sale will be applied to purchases of oil in our region," he said.

Belarus has pledged to export to Venezuela farm equipment, building materials and potash. (Reporting by Andrei Makhovsky, Writing by Ron Popeski, Editing by Ibon Villelabeitia)

Source:

http://uk.reuters.com/article/oilRpt/idUKL10625620071210