Agreement on transshipment of Belarusian oil products through Russian ports signed for 3 years

The cooperation between Belarus and Russia has become more active recently. The logistics is a good example of the determination to enhance cooperation.

The Belarusian oil products will be exported via Russian ports. The transport ministers of the two countries signed the corresponding agreement in Moscow today.

And this is not only an economic benefit, but also political support for each other at such a difficult time for both countries. So, while our European partners are talking about sanctions and threats, we are introducing countermeasures.

The fact that the Belarusian cargo could change the ports of the Baltic States for Russian ports was first mentioned at the end of last year. In December 2020, the governor of Leningrad Region told about the ports ready to receive Belarusian cargo and economic benefits for both countries.

And the President of Belarus has put the final point. On February 16, Alexander Lukashenko approved the draft intergovernmental agreement with Russia. And today, in Moscow, the transport ministers of the two countries signed the historic document.

Now, the Belarusian oil products will be exported to third countries through the Russian port of Ust-Luga. It is a versatile port, providing handling services for more than 20 types of cargo. Our domestic fuel oil, gasoline and oil will come to the terminal of Ust-Luga. Today, its production capacity is 30 million tons of oil products a year. Three and a half million tons can be received from the Belarusian producers already this year.

The agreement has been signed for three years, and during this time the Russian ports are ready to carry out the transfer of about 10 million tons of Belarusian oil products. But in fact, the document is of unlimited validity, as it can be automatically prolonged.

Alexey Avramenko, Minister of Transport and Communications of Belarus: "We are also going to sign commercial contracts. Our exporters, Mozyr refinery, Naftan, are interested in implementation of this project. And there is absolute price parity with the ports of the Baltic States, which is mutually beneficial for both of our countries".

The agreement signed so far only relates to transshipment of oil products. However, in the future Belarusian potash fertilizers, timber, and domestic engineering products may also be exported through Russian ports.