Russia seeks to increase imports of Belarusian gasoline
Russia is facing a shortage of motor fuel / sb.by
Against the backdrop of Ukrainian strikes on Russian oil refineries, the Russian government is considering increasing purchases of motor fuel from Belarus. According to sources, Russian Deputy Prime Minister Alexander Novak has instructed relevant agencies to hold consultations with Minsk on the possibility of boosting gasoline supplies.
The Russian government is also considering increasing payments under its fuel damping mechanism, including for Belarusian fuel imports. The mechanism compensates oil companies when it is more profitable to sell gasoline or diesel abroad than on the domestic market. In practice, this would allow Belarusian refineries to earn more thanks to subsidies from the Russian federal budget.
Ukrainian attacks on Russian refineries have already led to fuel shortages in some parts of Russia. In occupied Crimea, for example, gasoline has been rationed through a coupon system, while temporary restrictions have also been introduced in Moscow.
Belarus’ two major refineries — the Mozyr Oil Refinery and Naftan — have a combined processing capacity of up to 24 million tonnes of crude oil per year and can produce around 4 million tonnes of gasoline annually. About half of that output is consumed domestically.
Russia, by comparison, consumes roughly 3 million tonnes of gasoline every month. As a result, Belarusian refineries could generate significant additional profits from exports to Russia only by reducing supplies to the domestic market.
