Russia increases fuel imports from Belarus due to risk of shortage after attacks on refineries

Russia increased its petrol imports from Belarus in March to overcome the risk of shortages in its domestic market, which arose due to repairs at Russian refineries after drone attacks.

Source: Reuters citing industry and trade sources

Details: Russia is usually an exporter of petrol to international markets, but the failure of Russian refineries has forced oil companies to start importing it.

Russia usually imports very little petrol from Belarus. This year, it has increased its imports, and in the first half of March it purchased almost 3,000 tonnes of petrol. Before that, Russia imported 590 tonnes in February, and there were no supplies from Belarus in January.

Two industry sources said that there have been discussions on further imports between governments and oil companies. One of the sources said that the talks were difficult as Belarus prioritised exporting its petrol to international markets.

Another source said that Russia’s import needs will depend on how fast the refineries can be repaired.

In addition, Russian oil companies may increase oil supplies to Belarusian refineries in exchange for additional oil products to be shipped to Russia.

Belarus has two oil refineries: the Novopolotsk Oil Refinery (Naftan) and the Mozyr Oil Refinery. Each has an operation capacity of 12 million tonnes per annum (about 240,000 barrels per day), but they typically process less, about 9 million tonnes per annum (about 180,000 barrels per day).

Background:

• The Russian government banned petrol exports for six months from 1 March and increased the standard for diesel sales on the exchange to 16%. These measures are intended to combat rising petrol prices.
• Back in September 2023, the Russian government reported that they were ready to take drastic measures in the petrol market due to a record increase in wholesale prices.

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