Barys Zhaliba: First sales of state property, then oil supplies

Russia will not increase oil supplies until Minsk fulfils its obligations on selling big enterprises.

Economist Barys Zhaliba spoke to charter97.org about plans of the Belarusian authorities to increase oil supplies from Russia to 24 million tonnes in 2014.

”It is just a project and a forecast. Its primary aim is to increase the output of two Belarusian refineries. They have been upgraded. We can suggest that the modernisation hasn't been completed yet. The refineries directors plan to continue it to increase reserves that will allow to process one million tonnes more next year,” the scientist noted.

He underlined that oil products were the main source of foreign currency in the country.

”Belarus may count on these volumes, but the country has to fulfil the conditions set by Russia. We know the main conditions. For example, our obligation to sell state property at a sum of $2.5bn to Russia. It hasn't been implemented. Oil supplies will grow if steps forward are taken. Besides, Belarus delays setting up holding companies. If brakes are removed, Moscow will make advances. An airbase. It's not a secret that the country is called to sell assets, but Lukashenka doesn't want to do it. If he loses [state] property, he will lose his power,” the expert is sure.

The economist adds the current Belarusian economy cannot exist without Russian oil.

“The country's domestic consumption of oil is about 6 million tonnes a year. Belarus produces 1.5-1.6 tonnes. The country cannot cover its oil demands for domestic use. Our economy can survive only if we have oil from an external source. Apart from our own source, we have only the Russian one,” Barys Zhaliba sums up.