Reuters: Russia Could Stop Oil Export To Belarus Since January 1

The parties have not agreed on the terms of delivery.

Russia may suspend oil pumping to Belarus since January 1. It is reported by Reuters, citing six sources in the industry.

Moscow and Minsk cannot agree on the price of oil, the tariff on transit through the territory of Belarus, and the compensation for the deterioration of the economy of the Belarusian refineries after a tax maneuver in Russia, the agency said.

The parties have less than 24 hours to resolve these issues. Otherwise, on January 1, Russia will have to suspend oil supplies to Belarus.

“The full volume of deliveries on schedule will definitely not happen, but whether they will deliver at least something in January depends on negotiations,” said one of the sources in the industry.

The Transneft and the Ministry of Energy were unable to promptly respond to the Reuters request. The operator of the Belneftekhim Belarusian oil refinery refused to comment.

The schedule of oil export and transit from Russia assumes the supply of 5.84 million tons of raw materials to the Belarusian refineries in January-March 2020, compared with 4.48 million tons in October-December 2019.

Lukashenka and Putin conducted telephone conversations on this issue on December 30 and 31. However, the press-centers of the rulers did not report that agreements had been reached.

There is even less information about today's telephone talks.

According to Reuters, from the end of last week, the Belarusian refineries have been preparing for the consequences of protracted negotiations: the enterprises have begun to reduce load, and stockpile raw materials.