US sanctions against Belarus petrochemical industries may disrupt export contracts, reduce revenue – trade union

<p> MINSK, Apr 28 - PrimePress. The sanctions imposed by the U.S. Department of the Treasury on Belarus’ petrochemical industries will result in disrupted export contracts, reduced revenues and negative social consequences, reads a statement by Belarus’ chemical, mining and petrochemical industries trade union (Belkhimprofsoyuz) </p> <p>   </p> <p> The statement was published on the website of the organization on April 27. </p> <p>   </p> <p> As previously reported, the U.S. Department of the Treasury will resume on 3 June 2021 the effect of economic sanctions on nine Belarusian companies - 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. The sanctions were imposed in 2006 for violations by the Belarusian authorities of the Iranian sanctions regime and political repression inside the country. Since October 2015, restrictive measures against Belarusian companies have been partially suspended due to progress in the area of human rights, in particular, the release of all political prisoners. </p> <p>   </p> <p> “The loss of sales markets due to the non-fulfillment of their contractual obligations and the reduction of revenues of the enterprises will make it impossible for the employers to fulfill the existing norms of collective employment agreements, job cuts, a decline in social guarantees for veterans, women and young people. These are guarantees not only for the workers of these enterprises, but also for teachers, doctors, students, pensioners and low-income citizens,” reads the statement of the Belhimprofsoyuz. </p> <p>   </p> <p> “On behalf of the workers, more than 140 thousand members of our trade union, we are categorically against economic sanctions and restrictions,” reads the statement. </p> <p>   </p> <p> In a statement released on Apr 20, Belarus’ petrochemical industries concern Belneftekhim referred to announced renewal of U.S. sanctions against itself and its affiliates as an unlawful, groundless and futile step. “…the sanctions will hurt not so much the enterprises, as their employees, ordinary workers and their families. The effect of the sanctions is equally aimed at the budget of the country, at the expense of which the interests of ordinary people and vulnerable groups are protected,” reads the statement. </p> <p>   </p> <p> On 27 April, Reuters reported with reference to relevant sources that Russian oil companies Rosneft and Surgutneftegaz might suspend crude supplies to Naftan (Novopolotsk, Vitebsk Oblast) in May for fear of falling under secondary US sanctions. The Belarusian government and Belneftekhim Concern have not yet commented on this information. </p> <p>   </p> <p> For exports and the domestic market the consequences of a possible suspension (or reduction of volumes) of refining at Naftan in May may be complicated by scheduled maintenance at Mozyr Oil Refinery (Gomel Oblast), which is expected during this period. </p> <p>   </p> <p> As previously reported by еnkorr, the Mozyr refinery last week warned Ukrainian partners to prepare a schedule for unloading the May portion of diesel fuel until 15 May, after which no shipments from the refinery will be made. The Belarusian refinery will reduce diesel shipments to Ukraine by 35% month on month in May 2021, to 150,000 tonnes. </p> <p>   </p> <p> As previously reported, in recent years, Belarus has been performing scheduled maintenance at Belarus’ oil refineries in accordance with a certain schedule: in late summer and early autumn, some facilities of Mozyr Oil Refinery (Gomel Oblast) were shut down, followed by Naftan. In 2020 it was decided to alter the schedule to avoid simultaneously suspending the operation the refineries. Thus, the Mozyr Refinery performed these works in May-June. End </p>

2021-04-29

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