Business news

19 Feb 2021

Belarus, Russia sign agreement on transshipment of oil products

MOSCOW, 19 February (BelTA) - Belarus and Russia signed an agreement on transshipment of Belarusian oil products via Russian ports. The document was signed by Belarus’ Transport and Communications Minister Aleksei Avramenko and Russian Minister of Transport Vitaly Saveliyev in Moscow on 19 February, BelTA has learned.

The agreement envisages the transshipment of more than 9.8 million tonnes of Belarusian cargoes via Russian Baltic sea ports in 2021-2023. These include fuel oil, petrol and oil. Oil products made by the Belarusian refineries will be transported to Russian ports by rail. The document sets the caps on rail tariffs and freight services at Russian seaports. The parties guarantee no increases in tariffs, except for annual overall indexation. The Russian side also guarantees the provision of rolling stock for the transportation of Belarusian oil products.

In recent days a lot of work was done to reach contracts with cargo operators, Aleksei Avramenko told reporters after the signing ceremony. "I am very glad that we managed to reach agreements. Signing of the relevant commercial contracts is in the works," he said.

The Russian Ministry of Transport noted that the necessary contracts between Belarusian and Russian economic entities will be signed today. It is expected that the first Belarusian foreign trade cargo will be transported via the Russian seaports in March.

"The agreement opens up new opportunities for supplying oil products using alternative routes," Aleksei Avramenko concluded.

Russian Minister of Transport Vitaly Saveliyev hailed the signing of the agreement as a historic event. According to him, the price for services for Belarusian suppliers in Russian ports is lower than it was in the ports of the Baltic countries. "All Russian economic entities have made significant discounts based on the volumes proposed by Belarus," the head of the Russian Ministry of Transport said.

"We believe that this agreement has been signed to the satisfaction of both sides. It will benefit both Russia and Belarus," Vitaly Saveliyev summed up.

The ministers also signed an agreement on cooperation in transport security. The document will enable to devise a unified mechanism of interaction to detect timely, prevent and suppress illegal interference in the activities of the transport complex in the passenger and cargo transport in international traffic and also in cabotage road transport.