Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Russia, Belarus to continue oil talks after fruitless summit

Published 02/07/2020, 03:09 PM
Updated 02/07/2020, 03:11 PM
Russia, Belarus to continue oil talks after fruitless summit

By Olesya Astakhova

SOCHI (Reuters) - Russia and Belarus will continue talks on oil supplies, a senior Kremlin official said, after a meeting between their leaders on Friday failed to resolve a politically charged dispute.

Russian oil flows to Belarus have dwindled to a trickle since Jan. 1 after the two countries failed to agree on supply terms for 2020. Oil exports via Belarus to Europe have so far been stable.

Speaking on the sidelines of talks between Russian President Vladimir Putin and his Belarusian counterpart Alexander Lukashenko, Dmitry Kozak said Russia would supply Belarus with natural gas this year under the same terms as it did in 2019.

"The talks have been positive. We agreed to continue consultations... on the fine-tuning of the integration mechanism," Kozak, who serves as deputy head of Russia's presidential administration, told reporters.

The oil row comes against the background of a wider dispute over an agreement to integrate their economies and political systems, signed back in 1999 by Lukashenko and then Russian President Boris Yeltsin.

Moscow has continued to push the plan, but Minsk has since resisted the idea of closer ties with Russia, fearing a complete takeover by the Kremlin.

Following the stoppage on Jan.1, Russia partially resumed its oil flows to Belarus on Jan. 4, thanks to supplies from Mikhail Gutseriyev's Safmar Group (MM:SFIN). There have been no requests from other Russian oil firms to supply oil to Belarus via pipelines this month.

Safmar will remain the sole Russian oil supplier to Belarus this month, traders told Reuters on Wednesday.

Safmar group companies Russneft and Neftisa plan to supply around 450,000 tonnes of oil to Belarus' refineries in February, the group's spokeswoman told Reuters, with around 100,000 tonnes of that to be delivered by rail, she added.

This is still not enough to feed the two main refineries in Belarus, which normally process around 1.5 million tonnes of oil monthly. In 2019, Russia supplied 18 million tonnes of oil to Belarus.

Kozak said on Friday the Russian government will facilitate talks between Russian oil companies and their Belarusian counterparts.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.