In 2020, Russia may compensate Belarus for the cost of oil supplies in the range of $60-70 million, Reuters have learnt from the Deputy Finance Minister Alexei Sazanov.
“The compensation mechanism is decided at a high level. It’s only being discussed for 2020. These will be small figures, unlikely to exceed $60-70 million in 2020,” he said.
In late March, Minsk and Moscow agreed on pricing for Russian oil supplies to Belarus after a three-month break. The major Russian oil companies have reduced the premium for oil supplies to Belarus from $12 to $5 per ton against the background of the global fall in commodity prices. At the same time, the Belarusian authorities claimed that the de facto deliveries would be without a premium starting from April, while part of the premium would be compensated by the Russian government through inter-budgetary calculations.
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The tax maneuver, which Russia plans to implement starting from 2019 provides for a phased abolition of oil export duties, with a simultaneous increase in the mineral extraction tax. As a result, starting from 2024, Belarus will purchase raw materials at world prices and will lose its advantage over competitors outside the EAEC.
According to the former Belarusian Finance Minister Maksim Yermalovich, the total loss of the country’s budget from the tax maneuver from 2019 to 2024 may amount to $8-12 billion. Minsk has been seeking compensation from the end of 2018.
