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Belarus loses some $130 mln due to ‘tax maneuver' in Russia

Belarus loses some $130 mln due to ‘tax maneuver' in Russia Belarus loses some $130 mln due to ‘tax maneuver' in Russia


Minsk, June 25 - Neftegaz.RU. The Belarusian economy lost about $130 million in January-May 2019 due to the ongoing tax maneuver in the Russian oil industry. Belneftekhim Deputy Chairwoman Svetlana Gurina made the relevant statement in an interview with the journal of the Belarusian state petrochemical concern Belneftekhim, BelTA has learned.

The official said: “If we talk about this year, in the first 5 months the Belarusian economy lost about $130 million due to the tax maneuver.” In her words, Belneftekhim has calculated consequences of the tax maneuver for the period till 2024, has studied the experience of work of other landlocked oil refineries that buy oil at global prices, and has come up with a model of development of the Belarusian oil refining industry for the next 6 years.

In 2024 oil price per tonne is expected to be $127.7 higher than that in 2018 ($70). Gurina pointed out that by that time Belarusian oil refineries will be in no way different from other landlocked oil refineries in terms of technology and the price for oil. This is why they should do business the way the rest of the world does.

The oil refineries have put together programs to prepare for work in conditions of the tax maneuver. The completion of investment projects to build a delayed coking plant at Naftan and a complex for the hydrocracking of black oil fuel at Mozyr Oil Refinery will be the most important stage.

The 2 Belarusian oil refineries are supposed to implement 150 measures to optimize production costs in 2019. In January-April 2019 the effect from these measures totaled Br41 million. The work will continue. Variants of optimal load of the production capacity in different economic conditions taking into account the demand on nearby markets with a solid profit margin have been determined.

To ensure effective operation of the oil refineries in new conditions, trade companies have been instructed to increase the profitability of sales of oil products on foreign markets. On the whole, according to Gurina, the Belarusian refineries see ways to work effectively with market prices for oil and oil products.

The Belneftekhim representative also said that in Q2 2019 Belarusian oil industry enterprises had an extremely complicated financial situation due to deliveries of poor-quality Russian oil to Belarus. Some enterprises had to revise production quotas and reduce workload, take out loans, and partially suspend social programs.

All the reserves of the industry have been used to alleviate the negative consequences. Additional bank funding has been raised. According to Gurina, Belneftekhim enterprises will have to work with Russian partners to deal with the matter of compensations for these superfluous financial costs.