Only Lukashenko Could Embarrass Himself Like That
- 1.12.2025, 20:27
"Unique" Belarusian refineries have been operating at a loss for two years.
It is not for nothing that Lukashenko is always bragging about the uniqueness of Belarusian refineries. Belarusian oil refineries are so unique that they can operate at a loss for two years and nothing will happen to them for that. And only the undermining of the Russian oil industry gave the refineries back hope. According to the results of the fourth quarter, the Mozyr and Novopolotsk refineries may return to work at a profit, promised the head of the Lukashenko administration Dmitry Krutoy. But this is not certain yet, writes planbmedia.io.
As Krutoy explained, the key to a return to profitable work is special conditions on toll processing of Russian oil. Faced with gasoline shortages due to Ukrainian drone attacks, the Russian authorities finally asked their ally for help.
First it was about the disastrous for the Belarusian market supply of 300,000 tons of gasoline a year. Then Moscow moderated its appetite. In September, Belarus sold 45 thousand tons of gasoline to Russia, and in October - 36 thousand.
"Tolling oil has begun to be processed at our two refineries, the oil products go back to Russia, something is sold on export markets, something is consumed here," said Krutoy in an interview with Belarusian television.
Using the problems of an ally, Lukashenko bargained for such conditions of tolling supplies, which allow the Belarusian refineries to operate with an average national profitability of 7-8%. Not so long ago, their profitability was deeply negative.
"Already since the fourth quarter, our two refineries are reaching a stable profit margin," Krutoy boasted.
Loss maneuver
In general, for refineries to operate at a profit would be a dubious cause for pride. If it were not for the very uniqueness of Belarusian refineries, which, receiving oil at preferential prices, managed to operate at a loss for two years. Because the profits of Belarusian factories ended immediately after the tax maneuver in Russia ended. That is, the Russian authorities stopped paying extra to Belarus for the supply of its own oil.
The authorities first officially recognized the unprofitability of Mozyr refinery in early 2024. The authorities did not recognize the loss of Naftan refinery in Navapolatsk. But things were definitely not better there. According to the results of the first two months, Novopolotsk losses amounted to Br324 million.
It didn't get any better. Since the beginning of this year, Lukashenko asked Putin to make sure that Belarusian refineries would not be unprofitable. In order to minimize losses, Belarus had to drastically reduce oil refining. At the beginning of the year, Mozyr refinery processed 22 thousand tons per month with a capacity of thirty thousand. The decline in oil refining not only crippled the economy of entire regions. It also undermined Belarusian exports.
So the return of refineries to work with profit in the Belarusian case is really a unique achievement that one can be proud of. It is just that Belarusian refineries are so unique that in order to operate at a profit they need a completely unique set of circumstances.