news

from 07.02.2008

Belarusian oil refiners’ profitability triples in January

Belarusian oil refiners’ profitability triples in January

In January 2008, the Belarusian oil refiners' profitability tripled over the same period last year, First Vice-Premier Vladimir Semashko told reporters on February 7.

According to him, in 2007 the Government devised a system of compensatory measures for the refiners. The problem was settled. The companies fulfilled the production programmes.

Naftan refinery invested $216 million into modernisation of the key assets, Mozyr refinery - $125 million. These moves will help increase the output and the crude processing level – from 68-70% to 92-93%, Vladimir Semashko said.

He also reminded of the task to supply the domestic petrochemical industry with chemical feedstock including with paraxylol – the product which has been included in the import-substituting programme.

Vladimir Semashko said that this year the market trends for the sales of oil products have improved. Last year the oil price hike led to an increase in the prices for oil products. The prices for oil products grew slower then. “We can regularly see this time lag when the prices for oil and oil products grow inadequately creating a kind of delta,” Vladimir Semashko went on to say. Today the prices for oil product have increased in the world market. Therefore the profits from refining each tonne of oil are much higher than last year.

The price for Russian gas for Belarus in Q2 will be normal, First Vice-Premier of Belarus Vladimir Semashko told media in Minsk on February 7.

He did not specify as to what the price will be. He added that in 2008 the gas price for Ukraine increased by $49.5 per 1,000 cubic meters, for Moldova – by $50. In Q1 the price for Belarus is $119 per 1,000 cubic meters. This is a normal price, Vladimir Semashko underscored.

The import substitution programme secured 40% of Belarus’ economic growth in 2007, First Vice-Premier of Belarus Vladimir Semashko told BelTA on February 7.

According to him, the programme helped the national economy overcome the difficulties related to the energy price spike. Vladimir Semashko noted that in 2007 the additional load on the economy attributed to the increase in gas prices was $1.2 billion, the one attributed to oil price rise - $1.5 billion.

The import substitution programme allowed the country to restrain the growth of a foreign trade deficit, the First Vice-Premier added.

According to him, the Government set the task to reach zero balance of foreign trade or to secure a little surplus. To achieve the goal, the Government identified a number of import substitution projects. Among them is setting up of a cold-rolled sheet production at Belarusian Steel Works. “We have been working on other import substitution projects as well,” Vladimir Semashko noted.