Interfax reported that Russian oil companies that supply oil to Belarus for refining in 2012 will obtain the right to export all the petroleum products produced from that oil.
The source, who was familiar with the document signed last week in Moscow said "In accordance with a protocol signed in Moscow on oil supplies to Belarus in 2012-2015, Russian companies can refine up to 50% of the oil supplied to Belarus at Belarusian refineries through tolling and fully dispose of the products produced from the oil."
The source said that next year based on a documented balance of 21.5 million tonnes of oil, Russian oil companies will be able to refine around 10.7 million tonnes through tolling. The oil products produced can be supplied to Russia in full on the condition that the oil company ensures a constant supply of motor fuel to its filling stations in Belarus.
Earlier, Russian oil companies supplying oil to Belarus had the right to export no more than 47% of the petroleum products regardless of whether the oil had been supplied on tolling terms or sold to Belarusian companies.
The source said in exchange for this measure, which both Russian oil companies and Belarusian refineries have been after for some time, Russian companies agreed to review prices. The source said "The protocol confirms a new price formula for oil. There are many components, but the main thing is that the formula virtually eliminates the previous variable supplier premium that was quite high. Now it is constant at USD 1.4 per barrel."
He said that for Belarus the price of Russian oil will come down USD 30 to USD 40 per tonne in 2012. The premium "is even lower than Germany and Poland pay."
The source said "The new supply conditions agreed in the protocol will be in force to the end of 2015. The protocol can then be extended upon the mutual agreement of the parties."
Belarus and Russia signed a protocol agreeing terms for oil supplies in 2012-2015 on December 15 in Moscow. Russia and Belarus are switching to a new price formula in accordance with Common Economic Space regulations. The document states that the countries will not use quotas and duties or other equivalent taxes and duties in mutual trade.
(Sourced from Interfax)
