Belarus-Russia Dispute; 'Minsk Turns to Iranian Oil'

The President of Belarus stated that due to disagreements with Russia regarding oil and gas imports, he has turned to Iran to supply his country's refineries. According to the Russian news agency TASS, Alexander Lukashenko announced on Friday, October 8, that following gas disputes with Russia, the Moscow government has reduced oil exports to Belarus. On September 28, Lukashenko signed a decree that increased the tariff for transporting Russian oil from Belarus by 50%. Russia claims that Belarus's action violates existing energy contracts between the two countries. Lukashenko stated that due to the decline in oil imports from Russia, his country has begun negotiations with Iran and is seeking other crude oil exporters who can offer discounts. He mentioned that the refineries in his country need to be 'filled to the brim with oil.' The processing capacity of Belarusian refineries is about half a million barrels of crude oil per day, all of which is supplied by Russia. Last year, the country purchased 21.9 million tons of oil from Russia, nearly the entirety of its refining capacity. In this context, the Sputnik news agency reported, citing Alexander Novak, the Russian Energy Minister, that Russia's oil exports to Belarus have decreased due to gas debts and a reduction in Belarusian petrochemical exports to Russia. On the other hand, negotiations between the two countries over the price of Russian gas exports to Belarus have been stalled for several months. Novak stated that the Minsk government owes $270 million for gas imports. However, Belarus denies any debts and claims that Russia has been overcharging. Iranian officials have not yet reacted to negotiations with Belarus regarding oil exports, but the Belarusian Oil Company had previously collaborated with Iran on the development of the Jofeir oil field before sanctions. The U.S. sanctioned this company in 2011 for cooperating with Iran, and ultimately the Belarusian company announced that it had ceased its activities in Iran. According to Reuters, Iran's oil and gas condensate exports reached 2.5 million barrels in August and 2.8 million barrels per day last month, figures that exceed Iran's oil exports during the pre-sanctions period. The majority of this oil volume has been exported to Asia, and European companies are currently purchasing crude oil from Iran on a single shipment basis.