Russia considers reducing Belarus oil supply as Minsk redirects petroleum exports

Belarus oil refineryBelarus oil supply: In yet another indication that all is not necessarily plain sailing within the newly formed Eurasian Economic Union, Russia’s Energy Ministry Alexander Novak last week signalled that Russia was considering reducing crude oil supplies to Belarus after the volume of petroleum that its close ally is contracted to send back from its oil refineries fell by 300% year-on-year in the first quarter of 2015.
Minsk is justifying the drop in exports on the grounds that the devaluation of the rouble means that the price it can command for petroleum in Russia is now lower than the export parity price and that it is now commercially more logical for it to sell its petroleum elsewhere. Officials are citing a protocol that was signed last May which allows them to do just that. 
For its part Russia, claims that Belarus is reneging on its commitments. “[We] have the right to cut volumes of oil stock supplied to the Republic of Belarus via pipelines in [any given] quarter if there is a shortfall in the delivery of motor fuel of more than 10% of the agreed delivery schedule” pursuant to the agreements,” Novak’s Ministry commented. A decision is to be taken by the end of June. Russia’s enforcement of the law will be considered in June 2015 when setting the schedule of oil delivery via cross-country pipelines outside Russia for the third quarter of 2015, the Ministry said.

 
Source: ITAR-TASS