Belarus views Russian oil/gas supplies on preferential terms as tool for covering losses from sanctions in 2022 – Krutoy

<p> MINSK, Dec 6 - PrimePress. Russian gas and oil supplies to Belarus on favourable terms are a stabilising factor for economic development in 2022, as well as a resource source to cover the damage from external sanctions. This follows from the statement voiced by Deputy Head of the Belarus President Administration Dmitry Krutoy in an interview broadcast on Belarus 1 TV channel. </p> <p>   </p> <p> The competitive terms of Russian energy supplies, “the agreements that have been reached with the Russian Federation on both gas and oil are a stabilising factor for the development of the economy next year”, said Krutoy. </p> <p>   </p> <p> “The price for gas exceeds $1,000 (per 1,000 cu.m. – editor’s note) on European markets, the price for Belarus is $128.5. This is a huge competitive advantage and one of the tools for covering some losses from sanctions, if we speak about added value, certain expenses,” Krutoy said. </p> <p>   </p> <p> In his words, experts estimate the value of the exports affected by sanctions at approximately $250-300 million per annum. “Those are primarily energy and petrochemical industry products. Naturally those shipments are expected to go down,” Krutoy explained. </p> <p>   </p> <p> “Given the first power-generating unit of the Belarusian Nuclear Power Plant will operate at full capacity, we expect to save 1.8 billion cubic meters of natural gas next year. It is about $200-250 million in monetary terms. It means that the money saved on gas will cover all the negative effects from sanctioned positions in trade with the EU next year,” Krutoy said. </p> <p>   </p> <p> Krutoy said: “Oil delivery contracts have been practically signed. There will be no issues with the oil market either… the volume is the same as this year. The state budget specifies a more conservative scenario – as much as 12.5 million tonnes will be processed. But the target is 16-17 million tonnes. Some will be delivered by rail and some by pipelines. This is why the two Belarusian oil refineries (Naftan and Mozyr NPZ) will be fully supplied with oil next year. There are no issues with that.” </p> <p>   </p> <p> “So far, we are coping well with the sanctions pressure. We have mobilisation plans for any scenario. So I don’t see any global problems on this topic yet,” Krutoy said. </p> <p>   </p> <p> As previously reported, after the August 2020 presidential election in Belarus a political crisis began. The EU, UK, US and Canada has been gradually imposing sanctions against Belarusian officials as well as individual businesses, accusing Minsk of election rigging and abuse of human rights. The EU has imposed individual and economic sectoral sanctions since 25 June 2021. In particular, EU restrictions target Belarus’ trade in oil products, potash fertilizers, raw materials and equipment for the production of tobacco and tobacco products. </p> <p>   </p> <p> The U.S. Department of the Treasury on 3 June 2021 re-imposed full blocking sanctions against nine Belarusian state-owned enterprises previously granted relief under a series of General Licenses by the Treasury Department (Belneftekhim Concern and its U.S. representative office, as well as Belneftekhim-controlled Belshina, Grodno Azot, Grodno Khimvolokno, Lakokraska, Naftan, Polotsk-Steklovolokno, and Belarusian Oil Trading House). </p> <p>   </p> <p> On 9 August 2021, the United States, UK and Canada imposed sanctions on major sectors of the Belarusian economy, including the potash and oil refining industry, government securities and money market instruments, as well as dual-use goods and technologies and the aviation industry. </p> <p>   </p> <p> On 2 December 2021, the EU, the US, the UK and Canada adopted new sanctions against Belarus. In particular, the U.S. expanded its Belarus sanctions list by including another 20 Belarusian individuals, 12 legal entities and two aircraft; the EU added 17 individuals and 11 legal entities, and the UK imposed sanctions on Belaruskali and eight individuals. </p> <p>   </p> <p> A lot of economic sanctions have not yet become fully effective. For example, the US sanctions on exports of Belarusian potash fertilizers will be effective from 8 December 2021, while the EU sanctions only apply to new contracts. </p> <p>   </p> <p> Thus, Belarus' gross domestic product increased by 2.4% year on year in January-October 2021 to Br143.259 billion ($58.049 billion, according to the exchange rate of the National Bank of Belarus). </p> <p>   </p> <p> Belarus’ foreign exchange revenues from exports of goods, services, non-financial transfers of companies and private households increased by 31.8% year on year in January-September 2021 to $34.981 billion. </p> <p>   </p> <p> Exports of goods from Belarus increased by 35.9% year on year in January-October 2021 up to $31.923 billion, including to the Commonwealth of Independent States by 30.4% to $18.858 billion, to the Eurasian Economic Union - by 23.7% to $14.089 billion, to the Russian Federation - also by 23.7% to $13.237 billion. Exports of Belarusian goods to non-CIS countries increased by 44.9% up to $13.065 billion in January-October 2021, while to the EU - 1.9 times up to $7.95 billion. End </p>

2021-12-07

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