The Agreement Between Russia and Belarus Is Far From Ambitious

Belarus is looking for alternative suppliers of oil. The country confirmed resuming talks with Kazakhstan on the export of Kazakh oil to Belarus. The announcement came three days later after a new round of negotiations took place between the leaders of Russia and Belarus, Putin and Lukashenko. The meeting resulted in finding some solutions to the energy sector problems. However, the prices Belarus has hopes for on Russian oil is far below Russia’s expectations. Thus, this is leading to disputes between the two countries.

Belinfat Tents, the Belarusian oil company, revealed yesterday that detail talks on oil supplies succeeded in Kazakhstan. Moreover, the Delegation of the Belarusian State held meetings with representatives of the Kazakh Ministry of Energy and oil companies. Parties talked about exporting oil to Belarus, supply volume, and logistical matters. The announcement reflects Belarus’s adherence to the plan to provide alternative sources of Russian oil. Furthermore, Belarus has been disappointed with the results of recent talks with Russia, which ended without any statements.

The Dispute Continues After the Fruitless Summit

Dmitry Kozak, Deputy Director of the Presidential Court of Russia, confirmed that gas supplies to Belarus continue this year, according to the terms of last year’s agreement. He stressed that the presidential administration would work with the Belarusian government to agree on the volume of supplies and prices with Russian oil companies. He referred the inability to grant reductions in the price since it would require imposing regulation of the state on the oil sector.

Dmitry Krutoy, Belarusian Deputy Prime Minister, made the first statement in this regard from Minsk. According to Krutoy, the Russian side agreed that Belarusian oil refineries would purchase oil based on world market prices. Also, he stressed that his country does not need any exclusive conditions. They only want to buy oil at international rates.

The Belarusian President had said earlier Russia wants to sell oil at prices higher than in world markets. Lukashenko hoped to obtain a reduction in the price of energy supplies from Russia. He based his hopes on the Russian-Belarusian Union State treaty. Belarusian side has always been reminded about it. The agreement stipulates the creation of equal conditions for players in the markets of the two countries, including the unification of oil and gas prices.

The talks in Sochi didn’t generate any results it sought. The two countries are awaiting the creation of appropriate conditions to continue negotiations.