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Lost earnings from selling Belarusian oil products estimated at $100m

Economy 25.04.2019 | 16:05
Vladimir Sizov. An archive photo
Vladimir Sizov. An archive photo

MINSK, 25 April (BelTA) – Belneftekhim estimates it has failed to earn about $100 million from selling oil products due to the situation around substandard Russian oil, BelTA learned from Deputy Chairman of the Belarusian state petrochemical concern Belneftekhim Vladimir Sizov on 25 April.

The official said: “We are now calculating losses we will incur in April. So far they are close to $100 million. The sum represents lost earnings from sales of oil products.”

In his words, both Belarusian oil refineries – OAO Naftan and Mozyr Oil Refinery – are now operating at roughly 50% of the workload they had before the quality of Russian oil went through the floor.

Last week Belneftekhim mentioned a sharp decrease in the quality of the Russian oil mixture Urals flowing in transit into the main oil pipeline section operated by OAO Polotsktransneft Druzhba. Expensive equipment at Mozyr Oil Refinery has been damaged as a result. Both Belarusian oil refineries – OAO Naftan and Mozyr Oil Refinery – have been forced to reduce their workload and are experiencing financial losses. On 24 April Poland stopped oil transit via the Druzhba oil pipeline system for an indefinite period of time due to the refusal of Polish and German oil refineries to process poor-quality Russian oil.

Transneft representatives to come to Minsk on 26 April to discuss substandard oil situationTransneft representatives to come to Minsk on 26 April to discuss substandard oil situation
“We've scheduled negotiations with Transneft Company for tomorrow. They've been invited to Minsk. The negotiations will take place at Belneftekhim premises. We will try to come up with technical solutions to the problem of deliveries to Belarusian oil refineries,” Vladimir Sizov said.
Poland stops oil transit via Druzhba pipelinePoland stops oil transit via Druzhba pipeline
The official said: “We've received a letter from PERN saying that oil refineries in Poland and Germany are unable to take in and process oil with the parameters registered in the oil transfer hub Adamowo. As of 22:00 Warsaw time or 23:00 Minsk time on 24 April they stopped collecting oil."
Substandard Russian oil breaks expensive equipment at Belarusian oil refinerySubstandard Russian oil breaks expensive equipment at Belarusian oil refinery
For the last few days Mozyr Oil Refinery had to deal with the Urals oil mixture with a high content of chlorinated organics with high corrosiveness. “The poor quality of the raw materials we have to deal with has had an effect on the equipment's performance,” the company's representatives noted.
Belarus partially resumes export of light oil products to Ukraine, Poland
The official said: “We've decided to partially satisfy needs of foreign partners. A decision has been made to ship some 32,000 tonnes of diesel fuel towards Ukraine, 8,000 tonnes of diesel fuel towards Poland, and about 10,000 tonnes of gasoline also towards the Ukrainian market.”

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