You're reading: Russia, Belarus allow for oil supply below 24 million tonnes

The agreement between Russia and Belarus allows for the possibility of Russia supplying less than the 24 million tonnes oil set out in the indicative balance, Russian Energy Minister Alexander Novak told reporters.

According to the balance, Russia will supply Belarus with 24 million tonnes oil, of which 18 million tonnes will go to Belarusian refineries. The remaining 6 million tonnes can be sent for export to other countries without being classified as re-export.

“We have 24 million tonnes set down in the indicative balance. This is the volume that Belarus has the right to receive. As part of the relations that have been settled there are certain possibilities, including that a smaller volume will be supplied, but this share can be sold by our Belarusian partners, and in the overall volume it will constitute not more than 24 million tonnes,” he said.

Russia reduced crude oil supplies to Belarus from 24 million to 18.4 million tonnes in 2016 due to differences in approaches to gas pricing. Those differences were resolved in Q2, but protocols to talks by the two states said Russia would be supplying 24 million tonnes of oil to Belarus per year.

Even so, Russia supplied 4 million tonnes of oil to Belarus in Q1 and 5 million tonnes in Q2, and plans to supply 4.5 million tonnes in Q3. The drop in supplies can be explained by a drop in consumption inside Belarus as refineries are being upgraded.

Novak said the Energy Ministry was looking at ways to make Russian ports and rail infrastructure more attractive for transporting Belarus petroleum products.