Belarus May Get More Russian Oil in 2021 Under Energy Row Settlement Deal

Russia can boost the amount of oil it supplies to Belarus after 2021, according to documents settling a long-running energy dispute between the two neighboring countries signed Thursday. MOSCOW (Sputnik) — Earlier in the day, Russian Energy Minister Alexander Novak and Belarusian Deputy Prime Minister Vladimir Semashko signed documents to settle the gas price and oil supplies row between the two countries. Russia agreed to supply 24 million tonnes of oil per year to Belarus, while Minsk agreed to pay $130 per 1,000 cubic meters of gas. The signing finalized an agreement reached by Belarusian President Lukashenko and Russian President Vladimir Putin earlier this month. "The given yearly volumes of crude oil can be altered subject to pipeline technical capabilities by up to 2 percent. Crude oil volumes supplied from Russia to Belarus can be increased starting from 2021 at the discretion of both sides," the agreement reads. The deal hinged on Belarus paying the full $130 per 1,000 cubic meters wanted by Russia while mitigating the $30 that Minsk wanted in discounts by re-exporting petrol products made from Russian oil to third countries rather than to Russia, as had been done previously. Meanwhile, Russia agreed to refinance gas debts owed by Minsk. The arrangement will last until 2019, by when Belarus should upgrade its refining capacities, according to Lukashenko. The most recent Russian-Belarusian energy dispute escalated in 2016 after Minsk called Russian gas prices unfair and unilaterally reduced them. By late 2016, Belarus owed $270-$300 million for Russian gas. Minsk refused to acknowledge the debt, with Russia reducing its duty-free oil exports to Belarus saying it was due to inadequate gas payments and insufficient petroleum products’ shipments to Russia. Belarusian authorities had also increased rates on the transit of Russian oil via the country's territory. Read more: https://sputniknews.com/business/201704131052619557-belarus-russia-oil/