Belarus to give Russian tolling 100% oil product exports - source
MINSK. Dec 20 (Interfax) - Russian oil companies that supply oil to Belarus for refining in 2012 will obtain the right to export all the petroleum products produced from that oil, a source in the oil industry told Interfax.
"In accordance with a protocol signed in Moscow on oil supplies to Belarus in 2012-2015, Russian companies can refine up to 50% of the oil supplied to Belarus at Belarusian refineries through tolling and fully dispose of the products produced from the oil," the source, who was familiar with the document signed last week in Moscow, said.
The source said that next year based on a documented balance of 21.5 million tonnes of oil, Russian oil companies will be able to refine around 10.7 million tonnes through tolling. The oil products produced can be supplied to Russia in full on the condition that the oil company ensures a constant supply of motor fuel to its filling stations in Belarus.
Earlier, Russian oil companies supplying oil to Belarus had the right to export no more than 47% of the petroleum products regardless of whether the oil had been supplied on tolling terms or sold to Belarusian companies (refineries or other companies acting as a tolling service).
The source said in exchange for this measure, which both Russian oil companies and Belarusian refineries have been after for some time, Russian companies agreed to review prices. "The protocol confirms a new price formula for oil. There are many components, but the main thing is that the formula virtually eliminates the previous variable supplier premium that was quite high. Now it is constant at $1.4 per barrel," the source said.
For Belarus the price of Russian oil will come down $30 to $40 per tonne in 2012. The premium "is even lower than Germany and Poland pay," he added.
Earlier, Belarus paid Russian oil companies a premium of $4.5-$6 per barrel. The premium was directly proportional to the amount of Russian oil refined at Belarusian refineries.
"The new supply conditions agreed in the protocol will be in force to the end of 2015. The protocol can then be extended upon the mutual agreement of the parties," the source said.
Belarus and Russia signed a protocol agreeing terms for oil supplies in 2012-2015 on December 15 in Moscow. Russia and Belarus are switching to a new price formula in accordance with Common Economic Space regulations. The document states that the countries will not use quotas and duties or other equivalent taxes and duties in mutual trade.
The Belarusian Economy Ministry and Russian Energy and Economic Development ministries discussed crude and petroleum product balances for the Union State in 2012. For the first time they envisaged supplies of Belarusian oil products for Russian consumers.