The end of prosperity: The state of Belarusian refineries
The end of prosperity: The state of Belarusian refineries

Author(s): Kamil Kłysiński
Subject(s): Politics, Geopolitics
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Belarusian refineries
Summary/Abstract: The sanctions imposed by the West after 2020, along with the involvement of Alyaksandr Lukashenka’s regime in the invasion of Ukraine, have severely impacted Belarus’spetrochemical sector. The EU’s embargo on the import of petroleum products, enforced since June 2021, has effectively cut off Belarusian exporters from profitable Western markets. Furthermore, sales to Ukraine, one of the country’s key markets, have also been halted due to the ongoing war.The Belarusian oil sector, once a significant source of profit, has recently been compelled to reorganise its supply logistics and redirect its exports. Following a challenging year in 2022, Belarus’s two refineries, with support from Moscow, managed to partially recover their losses by capitalising on favourable price trends in the Russian fuel market. However, this industry, along with other sectors of the economy, has become entirely dependent on cooperation with Russia. While the refineries have adapted to the new circumstances, they were still forced to reduce oil processing by approximately one-third, which has negatively impacted their profitability and, consequently, diminished their importance within the national economy.

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