Expert says Belarusian oil products sold in Ukraine at $50 per ton more expensive than in Europe
<p> MINSK, Aug 24 - PrimePress. Belarusian oil products are sold in Ukraine at an average of $50 per ton more expensive than in Europe, enkor reports citing Artyom Kuyun, analyst at Consulting Group A-95. </p> <p> </p> <p> “For the last 10 years, Ukraine buys at least 3.5 million tonnes of oil products annually from the Mozyr refinery. On each ton, our (Ukrainian – editor’s note) market gives a better price than when exported to Europe - on average $50/t better. Thus, in 10 years Ukraine has given the plant (Mozyr Oil Refinery – editor’s note) $1.75bn dollars in extra revenue”, Kuyun said. </p> <p> </p> <p> In his words, European sanctions have limited Belarusian oil products sales to the domestic market, the CIS and Ukraine. “The first two (markets) are overfilled with fuel, Ukraine remains,” Kuyun said. </p> <p> </p> <p> He said that in January-July 2021, Belarus’ share in the Ukrainian market of gasoline was 50%, diesel fuel - 35% and bitumen - 50%. Diesel fuel supplies increased by 40% (to 1.4m tonnes) in 2021, replacing Russian supplies in particular. </p> <p> </p> <p> "The sanctions could push additional volumes of oil products into Ukraine, particularly from Poland, which is up to another 1m tonnes. Also, the volume of gasoline was and remains excessive,” Kuyun noted. </p> <p> </p> <p> According to him, in January-July 2021, Belarusian and Russian supplies of motor fuel accounted for more than 60% of the Ukrainian market, while in 2020 it was more than 70%. </p> <p> </p> <p> As previously reported, the EU imposed sanctions against major sectors of the Belarusian economy. The sanctions have been in effect since 25 June 2021. This includes a ban on the purchase, import or movement through the EU territory from Belarus of oil products and potassium chloride products. All the bans imposed by the EU on Belarus do not apply to contracts concluded before 25 June 2021. </p> <p> </p> <p> As previously reported, BelOil increased petrol supplies to Ukraine in 2020 by 23.7% from 2019 to 854,500 tonnes. Belarus’ share in the petrol import into Ukraine increased in 2020 by 9 percentage points on the year to 78%. </p> <p> </p> <p> The increase resulted from new terms of sale of Belarusian petrol to Ukrainian traders in a package with diesel fuel under fixed-term contracts for 2020. Earlier, BelOil determined that the share of petrol in package sales should be at least 40% of the declared diesel fuel purchase volume. </p> <p> </p> <p> Belarusian Oil Company (BelOil) was established in May 2007. Shareholders: Belorusneft (Gomel) - 52%, Naftan (Novopolotsk, Vitebsk Oblast) and Mozyr Oil Refinery (Gomel Oblast) - 24% each. BelOil exports oil products produced by its shareholders, as well as purchases and refines oil at Belarusian refineries and facilitates freight forwarding deliveries. It has subsidiaries in Poland, Latvia, the UK, Russia and Ukraine. End </p> <p> </p>
2021-08-25
Primepress
Expert says Belarusian oil products sold in Ukraine at $50 per ton more expensive than in Europe
MINSK, Aug 24 - PrimePress. Belarusian oil products are sold in Ukraine at an average of $50 per ton more expensive than in Europe, enkor reports citing Artyom Kuyun, analyst at Consulting Group A-95.
“For the last 10 years, Ukraine buys at least 3.5 million tonnes of oil products annually from the Mozyr refinery. On each ton, our (Ukrainian – editor’s note) market gives a better price than when exported to Europe - on average $50/t better. Thus, in 10 years Ukraine has given the plant (Mozyr Oil Refinery – editor’s note) $1.75bn dollars in extra revenue”, Kuyun said.
In his words, European sanctions have limited Belarusian oil products sales to the domestic market, the CIS and Ukraine. “The first two (markets) are overfilled with fuel, Ukraine remains,” Kuyun said.
He said that in January-July 2021, Belarus’ share in the Ukrainian market of gasoline was 50%, diesel fuel - 35% and bitumen - 50%. Diesel fuel supplies increased by 40% (to 1.4m tonnes) in 2021, replacing Russian supplies in particular.
"The sanctions could push additional volumes of oil products into Ukraine, particularly from Poland, which is up to another 1m tonnes. Also, the volume of gasoline was and remains excessive,” Kuyun noted.
According to him, in January-July 2021, Belarusian and Russian supplies of motor fuel accounted for more than 60% of the Ukrainian market, while in 2020 it was more than 70%.
As previously reported, the EU imposed sanctions against major sectors of the Belarusian economy. The sanctions have been in effect since 25 June 2021. This includes a ban on the purchase, import or movement through the EU territory from Belarus of oil products and potassium chloride products. All the bans imposed by the EU on Belarus do not apply to contracts concluded before 25 June 2021.
As previously reported, BelOil increased petrol supplies to Ukraine in 2020 by 23.7% from 2019 to 854,500 tonnes. Belarus’ share in the petrol import into Ukraine increased in 2020 by 9 percentage points on the year to 78%.
The increase resulted from new terms of sale of Belarusian petrol to Ukrainian traders in a package with diesel fuel under fixed-term contracts for 2020. Earlier, BelOil determined that the share of petrol in package sales should be at least 40% of the declared diesel fuel purchase volume.
Belarusian Oil Company (BelOil) was established in May 2007. Shareholders: Belorusneft (Gomel) - 52%, Naftan (Novopolotsk, Vitebsk Oblast) and Mozyr Oil Refinery (Gomel Oblast) - 24% each. BelOil exports oil products produced by its shareholders, as well as purchases and refines oil at Belarusian refineries and facilitates freight forwarding deliveries. It has subsidiaries in Poland, Latvia, the UK, Russia and Ukraine. End