More expensive oil, natural gas for Belarus in four years

Belarus should be ready to face an increase in prices for oil and natural gas in four years due to Russia’s policy aimed at securing equal profits from selling hydrocarbons in the country and abroad. The statement was made by First Vice Premier of Belarus Vladimir Semashko at the plenary session of the 18th Belarusian Energy and Ecology Congress in Minsk on 16 October, BelTA has learned.

Vladimir Semashko explained that thanks to arrangements made by the heads of state and the strategic level of Belarus-Russia partnership for now Belarus buys Russian oil and gas at prices, which are much more advantageous than those Ukraine and the European Union get. The level of prices was secured in 2010 but it will not last forever, noted the official.

Vladimir Semashko underlined that the expected increase in prices will affect both Belarus and Russia. For several years Russia has been raising domestic prices for natural gas and oil following the equal profits policy. Russia intended to reach the global level of prices by 2015. However, according to Vladimir Semashko, the process has been slowed down since Russian domestic customers now suffer from the higher energy prices and tariffs. Russia now intends to reach the global prices by 2018 and Belarus will have to do the same. The available time has to be used as best as possible in order to raise the energy effectiveness level in Belarus, explained the First Vice Premier.

Speaking about energy effectiveness accomplishments in Belarus, Vladimir Semashko reminded that Belarus looks good in comparison with neighboring countries with regard to GDP energy intensity, energy effectiveness, the usage of local fuels, the deterioration of the key assets, and the modernization of energy sources. Belarus also intends to get closer to the energy effectiveness demonstrated by global leaders, primarily Canada where climatic conditions are similar. A lot will have to be done in large-scale energy generation and small-scale energy generation, in the production sector and the social sphere in order to keep the Belarusian economy competitive. First Vice Premier of Belarus Vladimir Semashko underlined that both the government and the country’s leadership understand what improvements have to be made in order to raise energy effectiveness. It is important to make manufacturers, businessmen, and the nation as a whole to understand and share the views, too.