Talks over Russian oil supplies to Belarus continue - Dvorkovich
MOSCOW. Nov 19 (Interfax) - Russia has not agreed to supply Belarus with up to 23 million tonnes of oil in 2013, and the negotiations continue, Deputy Prime Minister Arkady Dvorkovich told the press.
"At the present moment we have not agreed with Belarus on an oil supply volume in 2013 of up to 23 million tonnes. Negotiations on this issue continue," he said.
On Friday, First Deputy Belarusian Prime Minister Vladimir Semashko said at a press conference following a meeting with Dvorkovich that agreement had been reached to the effect that Belarus would be importing 23 million tonnes of oil from Russia next year.
"Belarus agreed with Russia on the import of 23 million tonnes of oil in 2013," Semashko said. "In 2013, we agreed it will be 23 million tonnes, and heard no objections. I have grounds for saying that this figure will be 23 million tonnes," he said.
Semashko said that during the course of the negotiations the 'unblocking' of the situation involving restrictions on Q4 oil shipments was achieved. "We unblocked the situation that several Russian and Belarusian companies created this year, and with our actions provided a rationale [for limiting deliveries]," he said.
Mozyr Oil Refinery has already been operating at full load for around a week, processing 32,000 tonnes of oil per day, where in October daily refining did not exceed 22,000 tonnes, Semashko said.
Next year, Belarus will be prepared to supply the Russian market with oil products, but only if there is profit in it, he said. "We are not saying 'no,' we are saying 'yes,' but if it is on market terms," he said.
Belarusian refineries exporting oil products to third countries on netback terms make profits of $20-$25 per tonne, and that profit is minimal, only allowing them to conduct modernization, Semashko said.
Belarus agrees to supply Russia with high-octane gasolines, if those deliveries are at least break-even, he said. Mutual understanding on this has been found, and such deliveries have been being made over the past two weeks, he said. But refineries are incurring losses of $60-$80 per tonne when delivering diesel fuel to Russia, he said. "In such conditions, we'll go bankrupt," he said, adding that Russia understands this.
Semashko said that Belarus's obligations to supply the Russian fuel market are a temporary thing. This measure will remain in place until Russian refineries finish up modernizing their production facilities.