Belarus agrees on new way to resolve gas and oil dispute with Russia

Belarus agrees on new way to resolve gas and oil dispute with Russia

Belarus and Russia have agreed on another way to resolve the oil and gas conflict, Vladimir Semashko told reporters on February 16.

The Deputy Prime Minister of Belarus noted that the decision to sign the agreement may be taken as early as next week.

It is expected that this document should resolve contentious issues between the two countries on oil supplies and price of gas. Belarus insists on reducing the cost of Russian gas.

The parties are working out mutually acceptable terms of oil supply.

Vladimir Semashko, Deputy Prime Minister of the Republic of Belarus:
One of our backbone concerns is Belneftekhim. Therefore, because supplies were cut by two times in the second half of 2016 (or to be precise, by 5.5 million tons), naturally, one of the main concerns did not output the planned volumes. Therefore, we did not hit the planned targets. If Belneftekhim had enough resources and raw materials - oil - then we would be at the level of 101-101.5%.

Overall, in 2016 the Industry Ministry of Belarus retained a positive trend in exports and production volumes. This is partially thanks to the diversification of markets and import substitution, as well as government support.

Companies who receive preferential loans and grants in Belarus are obliged to export half of their output and equipment made for sale within Belarus must be competitive in terms of quality and price with foreign analogues.