Belarus to sign next oil deal with Russia by July 1, 2019

Belarus to sign next oil deal with Russia by July 1, 2019

Minsk and Moscow have finally settled all issues in the oil and gas sector. Vice Premier of Belarus Vladimir Semashko and Russian Energy Minister Alexander Novak signed on 13 April protocols that make changes to the previous agreements.

According to the documents Belarus will every year receive from Russia 24 million tons of oil, of which 18 will be used for recycling.

Belarus will be able to take export duties for the remaining six tons in its own budget. Such a quota is valid until 2024. Russia will start increasing the amount of oil sent to Belarus as early as in April 2017.There are relevant technological and manufacturing capabilities for this.

Arkady Dvorkovich, Deputy Prime Minister of Russia:
These conditions are fully coordinated, it is the official signing of the appropriate arrangements. On the basis of these agreements on the gas issues, we will change the volume of oil supplies,

bringing them in line with earlier agreements - 24 million tons per year.

The sides have agreed on the procedure for determining the price for natural gas for Belarus until the end of 2019.

The cost of 1,000 cubic meters of gas for Belarus, with the discount, is less than $130. 

It is possible that the settlements will be made in Russian rubles.

Vladimir Semashko, Deputy Prime Minister of the Republic of Belarus:
We agreed that, on the basis of these basic conditions, no later than by July 1, 2019, we will sign the next agreements, which will clearly spell out the price of gas for Belarus, no matter how the prices and rates in Russia change. The task is to make these prices very close, if not equal.

This is in order for our electricity and gas industry to be in the same dimensions, the same scale.

A package of proposals will be formed before the end of 2017 the aim of which

is to bring Belarus and Russia to the single market natural gas by 2025, in the framework of the Eurasian Economic Union.