Belarus Seeks Alternatives After Russia Halts Oil Supply

Belarusian oil production is insufficient to support the nation, leading to reliance on foreign imports. (Wikimedia Commons)

Belarus began importing crude oil from Norway on January 21 due to a supply row with Russia, its main oil provider, according to the Associated Press (AP). 

According to the AP and Reuters, the Belarusian state-run oil company, Belneftekhim, purchased 80,000 tons of oil from Norway’s Johan Sverdrup field. After oil from Norway arrives at the Lithuanian port of Klaipeda, trains will deliver the oil to refineries across Belarus within the next few days. 

Russia suspended oil supplies to Belarus on January 1 when the two ex-Soviet republics failed to agree on a price for Russian oil, as well as on the extent to which their economic ties should be strengthened, according to Reuters. Talks stalled over concerns of increasing Russian influence over Belarus, as the Kremlin sees Belarus as a buffer zone between Moscow and the West, Reuters reports.

Belneftekhim has stated that no Russian oil will be supplied until contracts for 2020 are drawn up, according to AP. The two main refineries in Belarus have been operating at low capacity, leading the country to rely on reserves.

While it is more expensive to import oil from sources other than Russia, Belarusian President Alexander Lukashenko views this as an important message to Moscow regarding the financial and political independence of Belarus. Minsk-based political analyst Valery Karbalevich said, “Lukashenko is sending a clear signal to the Kremlin that he is ready to tighten his belt, but isn’t ready to become a Russian governor,” AP reports.

According to the AP, Lukashenko acknowledged in a government meeting on January 21 that Belarus must diversify its oil imports, aiming to import no more than 40 percent of its oil from Russia. “Another 30 percent we should import from the Baltics, and the remaining 30 percent through Ukraine,” Lukasheko said. 

Currently, over 80 percent of Belarus' overall energy needs depend on Russia, and over 90 percent of its crude oil is supplied by Russia, as Russia has offered Belarus discounted prices and loans for more than two decades, AP reports. Meanwhile, Russia relies on Belarus to transport oil to the rest of Europe—around 10 percent of Western Europe's oil supplies come from Russia via a pipeline that passes through Belarus.

Radio Free Europe/Radio Liberty (RFE/RL) reports that Belarus has been negotiating with several European countries regarding oil imports. "I think we will get alternative sources for oil supplies soon. It is about all possibilities—Ukraine, Poland, the Baltic states, Kazakhstan, Azerbaijan, wherever. We are working on it now," Deputy Prime Minister Dzmitry Krutoy said on January 14.

Lithuanian Foreign Minister Linas Linkevicius has suggested exporting oil and gas to Belarus, and plans to discuss energy supply issues during his visit to Minsk next month, the Baltic Times reported. Azerbaijan's State Oil Company has also mentioned that the country has the technical potential to supply oil to Belarus, according to Azernews. Reuters reports that the Ukrainian port of Odessa is also reportedly in talks with Belarus about oil supply, although no deal has been reached.