Moscow, Minsk prolong previous oil, gas agreement for 2020

SOCHI/MINSK/MOSCOW, Feb 10 (PRIME) -- Moscow and Minsk have agreed to prolong the conditions of their natural gas contracts to 2020, Deputy Chief of Staff of Presidential Administration Dmitry Kozak told reporters late on February 7 following negotiations of the presidents Vladimir Putin and Alexander Lukashenko.

“Speaking of energy cooperation, we’ve agreed to prolong the gas supply conditions of 2019, and we will act keeping this in mind,” he said adding that the conditions will remain the same throughout 2020.

Belarusian news agency BelTA reported on February 9 quoting First Deputy Prime Minister Dmitry Krutoi that Minsk did not rule out a slight changes in the gas price for Belarus.

“It is possible that a slight adjustment may be made, but I think that the agreements have been reached here in general. The sides are ready for further constructive discussion on the basis of calculations that we have today,” Krutoi said as quoted by BelTA.

The countries have not discussed the gas price for 2021 yet, he said.

OIL TALKS

Russia will export its oil to Belarus on the same commercial conditions as before, Kozak said.

“It will be done at the previous commercial base because we have a common market, we have the goal of eliminating contradictions…The Russian oil market and the Belarusian oil market are united. We sell oil at the Belarusian market at the same conditions at which we sell it on the Russian market,” he said.

Minsk requested discounts, but that means that the Russian government would have to regulate the market, which it cannot do. “We can’t constantly change rules of the game, we will put our oil companies in an clear condition this way, that’s why we will aid an agreement between the Belarusian consumers and Russian oil companies,” he said, adding that the market will regulate oil prices for Belarus.

Krutoi also said that the Belarusian oil refineries will buy oil from Russian companies at global prices, and that no special conditions are necessary for that.

“If we speak about agreements on the oil and the oil market, the Russian side agreed that Belarusian refineries would buy oil under agreements with the Russian oil companies and at the prices defined by the international market,” he said, as quoted by BelTA.

Previously, Russian oil companies used the Belarusian market for exports, and there were restrictions on access to the transit oil pipeline of Transneft. Putin promised Minsk to lift these restrictions.

“That means that any company interested in working with our refineries and for which gaining access to the transit pipeline, to supplies through Transneft as an agent will bring profit. There will be no restrictions here. And we expect that these smaller and mid-sized companies will raise their interest in our country and our market so that we sign these contracts in the future,” Krutoi said.

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