Finance minister says refineries can get $650mn in tax deduction

January 16, BPN. An agreement signed between Belarus and Russia in October would make Belarusian oil refineries eligible for about 1.7 billion rubels in tax deductions, given that the price of a barrel reaches $80, Belarusian Finance Minister Juryj Sielivierstaŭ’s told Belarus 1 in an interview broadcast on January 15.

“We have not ratified it yet. Russia ratified it only on December 29, and we have pushed it through the two chambers of our parliament. And it was considered at a meeting with the head of state,” the minister said. He noted that Alaksandr Łukašenka should sign the agreement soon, but technically the plan will start functioning “only in March.”

“In Russia, those who sell oil products domestically receive a proper tax deduction. In fact, those making oil products in Belarus received a temporary tax deduction last year under the agreement with Russia that we had for part of 2021 and 2022. So, this system already worked for us, but only temporarily. Now that it has been included in the agreement, it will be permanent,” the minister explained.

He called the 1.7 billion rubels (some $650 million) against $80 per barrel “a tangible amount that will allow our refineries to refine oil products for our domestic market on the same terms as in Russia.”

Because of the Russian invasion of Ukraine, G7 imposed at the end of last year a price cap of $60 on Russian oil supplied to its member states. In addition, G7 is planning to impose price caps on Russian diesel, jet fuel and other oil products on February 5.

Russian Urals was trading at $56 recently.