BELARUSIAN ECONOMY & TRADE

"The transit supplies of Russian gas via Belarus in 2005 will go up by 7,4% in comparison with 2004", - said the Director General of the Open Joint Stock Company Beltransgaz Dmitriy Kazakov. According to him, this is a “contract figure” and it “may be surpassed”. The Director General emphasized that the Belarusian gas system was stably transiting the Russian gas to Europe and had necessary technical capacities to increase the transit volumes. “We are ready to consider any Gazprom’s proposals on increasing gas transit through the territory of Belarus,” he noted.

Dmitriy Kazakov also informed that in 2004 Russian gas transit through Belarus grew by 6,6% to 35,3bln cubic meters comparing with 2003.

BELARUSIAN OIL REFINERIES UP OIL PROCESSING 24.8% IN JANUARY-FEBRUARY

(on the information from Interfax)

In January-February 2005 Belarusian oil refineries increased crude intake by 24.8% in comparison with the corresponding period of last year to a total of 3,268,500 tons, - reported the Ministry of Statistics and Analysis of Belarus.

According to the records presented by oil refining companies, Naftan OJSC processed 1.651 million tons of oil (26.8% up), Mozyr Oil Refinery – 1.617 million tons (22.9% up).

In the period Belarusian oil refineries increased automobile petrol output by 62% to 564,300 tons, diesel fuel – by 24.1% up to 1,048,000 tons. In January-February 2005 3.06 million tons of Russian oil were delivered to Belarus, which makes 123.9% of the respective period of last year.

In 2004 the Belarusian oil refineries processed almost 18.45 million tons of oil (117% as against 2003). Naftan OJSC processed 8.85 million tons (107.9%), Mozyr Oil Refinery – 9.6 million tons (126.3%).

09/03/2005

Mozyr Oil Refinery boosts oil processsing in february

(on the information from Interfax)

Mozyr Oil Refinery (MOR) OJSC has increased the volume of oil processed by 22.9% against the same period last year to 1,617.2 thousand tons.

The enterprise refined 760 thousand tons of oil (12.2% up on year).

Within the period in question they produced 380.3 thousand tons of car petrol (71.7% up), 473 thousand tons of diesel oil (21.2% up), 515.8 thousand tons of mazut (109%), 51 thousand tons of furnace oil (91%).

Within the first two months of the ear commodity output of Mozyr Oil Refinery made BYR 657 billion (24.5% up on year).

In January 2005 MOR increased oil processing 34.3% in January 2005 to compare with January 2004 bringing the total to 857,000 tons.

In 2004 MOR refined 9.62 million tons of oil, 26.3% up against 2003.

24/02/2005

Beltransgaz to hold AGM Mar 25 to consider ‘04 profit distribution

MINSK, Feb 23 (Prime-Tass) -- Belarus’ gas pipeline monopoly Beltransgaz plans to hold an annual general meeting of shareholders (AGM) on March 25 to consider the distribution of the 2004 profit and key tasks for 2005, Beltransgaz said in a statement Wednesday.

The agenda for the AGM includes the distribution of profits in 2005, auditor’s report and election of members of the supervisory council and revision commission.

Beltransgaz was registered on April 30, 2003. The charter capital stands at 1.15 trillion Belarusian rubles. The state holds 99% in the company, and the employees hold the remaining 1% purchased during the preferential privatization.

Beltransgaz and Russian natural gas monopoly Gazprom have been negotiating the creation of a joint gas transportation joint venture on the basis of Beltransgaz for several years now. End (2,163 Belarusian rubles – U.S. $1)

23/02/2005

Belarus’ oil products export prices up 37% on yr in 2004

MINSK, Feb 22 (Prime-Tass) -- Belarus’ average contract prices on oil products exports rose 37% on the year in 2004 to U.S. $254 per tonne, while average contract prices on oil imports increased 36.4% on the year to $181 per tonne, an official with Belarus’ Statistics Ministry told Prime-Tass Tuesday.

Oil products prices on exports to the CIS states reached $412 per tonne, up 61.9% on the year, while prices on imports from the CIS rose to $245 per tonne, up 32.9% on the year in 2004.

In spite of the rise in oil prices, Belarus’ oil products exports in monetary terms were above oil imports in 2004.

Oil imports from Russia rose 19.7% on the year in 2004 to 17.814 million tonnes and cost Belarus $3.232 billion.

Belarus’ oil products exports increased 22.7% on the year in the period to 12.963 million tonnes worth $3.296 billion. Of them, exports to the CIS states tripled on the year to 747,600 tonnes worth $308 million and to non-CIS countries 18.4% on the year to 12.215 million tonnes worth $2.988 billion. End

21/02/2005

Russian companies raise oil supplies price for Belarus in Feb

MINSK, Feb 21 (Prime-Tass) -- Russian companies have increased the price of oil supplies to Belarusian refineries to U.S. $172 per tonne in February from $145 per tonne in January, an official with the Mozyr-based oil refinery, based in the Gomel Region, told Prime-Tass Monday.

“The rise in prices is not due to the new VAT collection conditions [in the country of destination from January 1], but due to the situation on the world market,” the official said, adding that crude costs about $300 per tonne on the world market.

Russian crude costs Belarusian refineries about $200 per tonne including VAT, which is markedly below the prices prevailing on the world market. Belarusian refineries still remain competitive, the official said.

Belarus’ oil refineries are expected to receive 4.5 million tonnes of crude for processing in the first quarter of 2005 in line with the schedule of Russian crude supplies to Belarus, mostly from Sibneft and Surgutneftegaz.

Russia’s crude supplies to Belarus reached 17.715 million tonnes in 2004, up 20.6% on the year. The remaining 637,000 tonnes were supplied by Belarus’ oil production monopoly Belorusneft. Crude processing by Belarusian refineries rose 17.7% on the year in 2004 to 18.352 million tonnes. Mozyr refinery processed in the period 9.534 million tonnes of crude, up 27.4% on the year, while Novopolotsk-based Naftan refinery processed 8.818 million tonnes, up 8.8% on the year. End

Russian govt OKs oil product export duty at $68.2 per tonne

MOSCOW/MINSK, Feb 21 (Prime-Tass) -- Russia's Prime Minister Mikhail Fradkov signed a resolution setting the export duty on most types of oil products at U.S. $68.2 per tonne.

Export duty on fuel oil was set at $36.7 per tonne.

The resolution is to come into effect one month after its official publication.

Russia’s export duty on light oil products is now at $57 per tonne and on fuel oil at $45.4 per tonne.

As Prime-Tass reported earlier, Russia will set new oil product export duties from April 1, 2005, using a new scheme. Export duties on oil products are to be set simultaneously with the duties on oil for two months based on the world oil price monitoring.

For light oil products the commission approved the formula 0.416 multiplied by (ц minus 109.5), where ц is the oil price, according to the monitoring, and 109.5 is the duty-free oil price. For fuel oil the formula is 0.224 multiplied by (ц minus 109.5).

Belarus last increased its export duty on oil products to $37.5 per tonne from $30.5 per tonne on October 20, 2004.

Belarus is to change its oil and oil product export duties in line with the agreement between the governments of Belarus and Russia on completion of unification and creation of a common system of tariff and non-tariff regulation.

Belarus is expected to change oil and oil product duties after April 1. End

17/02/2005

Govt launches differentiated gas prices for domestic consumers

MINSK, Feb 17 (Prime-Tass) -- Belarus’ Economy Ministry has set differentiated prices for natural gas for industrial consumers, decreasing them by 50% for some companies.

In accordance with ruling #20 of the Economy Ministry, for Beryozovskaya station the natural gas price was set at 105,506 Belarusian rubles per 1,000 cubic meters. The station uses gas to generate electric power, which is later exported to Poland.

Grodno Azot and Dolomit companies will get gas at 126,430 Belarusian rubles per 1,000 cubic meters; companies with Beltopgaz holding at 109,600 rubles, and companies of the peat industry, Rechitsa hydrolytic plant and Novopolotsk protein and vitamin concentrate plant at 66,540 rubles.

The ministry set the natural gas price at 126,430 Belarusian rubles per 1,000 cubic meters for three cement-producing companies – Krasnoselskstroymaterialy, Krichevtsenetoshifer and Belarusian Cement Plant.

The prices are effective from February 1, 2005.

Belarus’ Economy Ministry increased on February 1 the natural gas price for domestic manufacturers by 8.7% to 133,080 Belarusian rubles per 1,000 cubic meters without VAT.

Tariffs are to be adjusted depending on the market situation.

The rise in gas prices for domestic consumers is a result of the switch to the country of destination VAT collection principle from January 1. Russian gas monopolist Gazprom declined to cut gas price for Belarus by 18% [the amount of VAT], and gas will be supplied to Belarus at $46.68 per 1,000 cubic meters in 2005, the same as in 2004. End (2,167 Belarusian rubles – U.S. $1)

16/02/2005

Belarus wants Gazprom to reconsider Yamal-Europe’s second run

MINSK, Feb 16 (Prime-Tass) -- Belarus wants Russian natural gas monopoly Gazprom to reconsider the construction of the second Yamal-Europe gas-main run across Belarus instead of building the expensive North European gas pipeline.

“We are preparing relevant proposals and will submit them to Gazprom soon,” a source in the Energy Ministry of Belarus told Prime-Tass.

The North European pipeline will cost between U.S. $7 billion and $14 billion, with an estimated capacity between 19 billion cubic meters and 30 billion cubic meters. At the same time, the second Yamal-Europe run would cost Gazprom only $1.5-2 billion, and will have a capacity of 34 billion cubic meters.

Besides, Beltransgaz, the Belarusian gas pipeline monopoly, which services the Belarusian section of the first Yamal-Europe run, is a reliable partner of Gazprom, which is another reason, according to the Belarusian side.

Also, the land plots to build the second run were reserved back when the first run was started.

The first Yamal-Europe run cost Gazprom $1.5 billion. The Belarusian section is 575 kilometers long. Its estimated capacity is at 33 billion cubic meters. Gazprom pays Belarus a transit fee of $0.46 per 1,000 cubic meters of gas for 100 kilometers for transportation via Yamal-Europe.

Earlier, Gazprom’s Deputy CEO Alexander Ryazanov said Gazprom had postponed the consideration of the construction of the second run for some five or six years.

On Tuesday Gazprom’s CEO Alexei Miller said in an interview with state television channels the North European gas pipeline was to be launched in 2010.

The 3,000-kilometer North European pipeline, is expected to pass through Russia’s Vologda and Leningrad regions, along the Baltic Sea floor, across Germany and the Netherlands and along the North Sea floor to the U.K. End

13/02/2005

Belarus’ govt unlikely to change oil, oil product export duties soon

MINSK, Feb 11 (Prime-Tass) -- The Belarusian government does not plan to change export customs duties on oil and oil products in the near future, an official with the Council of Ministers told Prime-Tass Friday.

According to him, the government may change customs duties in April when Russia switches to the new method of export duty calculation.

“If Russia reduces oil and oil product export duties and Belarus benefits from it, the government may also cut the duties,” the official said.

“Currently, the government is drafting a ruling regarding the unification of the export duties on the oil products, which Belarus does not export,” the official added.

Russia’s export duty on light oil products is at U.S. $57 per tonne and on fuel oil at $45.4 per tonne.

Russia decreased the export duty on crude oil and crude oil products to $83 per tonne from $101 from February 1. Earlier, Foreign Ministry drafted a government ruling to reduce from February 1, 2005 oil export duty to the level of the duty to be effective in Russia. The government did not pass the ruling.

Belarus’ oil export duty on oil is at $87.9 per tonne and on oil products at $37.5 per tonne.

10/02/2005

Beltransgaz exempted from partial currency surrender

MINSK, Feb 10 (Prime-Tass) -- The Belarusian government and the National Bank of Belarus (NBB) have exempted Belarus’ state gas transportation monopoly Beltransgaz from obligatory sales of the currency revenues used to pay for gas supplies and rent the Belarusian strand of Yamal-Europe gas main, a government official told Prime-Tass Thursday.

The decision is dated back to January 1, 2005 and will be effective until December 31, 2006.

In Belarus, 30% of companies’ currency revenues are subject to obligatory sales via the Belarusian Foreign Stock Exchange.

Russia’s gas giant Gazprom started the construction of the Belarusian part of Yamal-Europe pipeline in 1997. Gazprom plans to complete the first Yamal-Europe line with an annual capacity of 32 billion cubic meters by mid-2005. The total length of the pipeline from Russia’s Torzhok to the Belarusian-Polish border is at 997 kilometers.

Gas transit via Belarus increased 6.6% on the year in 2004 to 35.5 billion cubic meters. Russia’s Yamal-Europe gas transit via Belarus rose 7.8% on the year to 23.5 billion cubic meters. End

10/02/2005

Oil transportation via Belarus’ pipelines up 0.1% on yr in Jan

MINSK, Feb 10 (Prime-Tass) -- Oil transportation via Belarus’ pipeline system increased in January 0.1% on the year to 8.701 million tonnes, which includes oil transit that dropped 5.8% on the year to 6.955 million tonnes, the country’s Economy Ministry told Prime-Tass Thursday.

Belarus’ oil pipeline system is run by the Gomel-based and Novopolotsk-based Druzhba state oil transportation companies.

Gomel-based Druzhba transported 7.022 million tonnes of oil in January, up 5.4% on the year. The company transported 814,000 tonnes of oil to the Mozyr oil refinery in January, up 36.1% on the year.

Oil transit via pipelines run by Gomel-based Druzhba amounted to 6.118 million tonnes in January, up 2.5% on the year. The total includes oil transit to Poland’s Adamovo at 4.189 million tonnes, up 3.6% on the year, and oil transit to Ukraine’s Brody at 1.929 million tonnes, up 10.2% on the year.

Novopolotsk-based Druzhba transported 1.679 million tonnes of oil in January, down 14.2% on the year. The company transported 842,600 tonnes of oil to the Naftan refinery in January, up 56% on the year,

The company’s oil transit to Lithuania’s Mazeikiu in January was down 40.9% on the year to 836,500 tonnes. End

09/02/2005

BELARUS INCREASES OIL EXTRACTION IN JANUARY

(on the information from Interfax)

In January 2005 production association Belorusneft extracted 151,600 tons of oil, 0.9% up on 2003.

Associated gas extraction totalled 22.8 million cubic metres, 104.3% as against 2003.

This year oil extraction is expected to make 1,880,000 tons, 4.2% up on 2004.

Last year Belorusneft decreased oil extraction by 0.8% down on 2003 to a total of 1,804,000 tons. Company specialists attributed the fall to depleting main oil fields. The resource base mainly grows with small fields with hard-to-obtain oil.

However, thanks to technical actions (waterproofing works, pumping optimization) and raising the number of wells by uncorking old ones the oil extraction volume will grow this year.

Belarusian geological oil deposits exceed 170 million tons mostly located in small oil fields with the capacity ranging from 100,000 tons to 1 million tons.

Founded in 1964, Belorusneft performs prospecting works, oil and associated gas extraction, gas refining, and provides a wide range of exploration seismology services.

08/02/2005

Mozyr Oil Refinery increases OIL PROCESSING

(on the information from Interfax)

Mozyr Oil Refinery (MOR) OJSC increased oil processing 34.3% in January 2005 to compare with January 2004 bringing the total to 857,000 tons.

The company processed 27,000 tons of oil a year.

At the same time, in January “oil products got stocked in warehouses,” as their export to Russia was stopped due to the absence of VAT administering mechanism after the de-jure transition to a new VAT collecting scheme, the source said.

In February, the export of oil products was resumed “with great difficulties,” the source said. However, the company is hopeful that “at the end of February the supplies to Russia will run according to the schedule.”

In Q1 2005 Transneft pipelines will deliver 2.25 million tons to the MOR, of which the company is to buy 260,000-300,000 tons for its own needs.

MOR processed 9.62 million tons of oil last year, 26.3% up on the year.

Mozyr Oil Refinery was commissioned in 1975. It has been part of Slavneft company since 1994. MOR shareholders are the Belarusian government (42.7% of the shares) and Slavneft company (42.5%), with the rest of the shares owned by individuals and company employees. With a new catalytic cracking installation put into operation, the company is now able to refine 10 million tons of oil annually.

The fuel-and-energy balance of Belarus for 2005 fixes Russian oil supplies to Belarus at 19.5 million tons as against 18 million tons in 2004.

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BELARUSIAN OIL REFINERIES UP OIL PROCESSING 24.8% IN JANUARY-FEBRUARY

Mozyr Oil Refinery boosts oil processsing in february

Beltransgaz to hold AGM Mar 25 to consider ‘04 profit distribution

Belarus’ oil products export prices up 37% on yr in 2004

Russian companies raise oil supplies price for Belarus in Feb

Russian govt OKs oil product export duty at $68.2 per tonne

Govt launches differentiated gas prices for domestic consumers

Belarus wants Gazprom to reconsider Yamal-Europe’s second run

Belarus’ govt unlikely to change oil, oil product export duties soon

Beltransgaz exempted from partial currency surrender

Oil transportation via Belarus’ pipelines up 0.1% on yr in Jan

BELARUS INCREASES OIL EXTRACTION IN JANUARY

Mozyr Oil Refinery increases OIL PROCESSING