Lukashenka unhappy with performance of oil refineries

Alyaksandr Lukashenka expressed concern on Thursday over the performance of Belarus' two oil refineries.

Speaking at a government conference, Mr. Lukashenka said that improving the performance of the refineries was key to the country's «energy independence and security.»

Describing oil refining as a strategic sector, the head of state said that its contribution to the economy was on the decline, and noted that the two oil refineries were contributing roughly as much as national telecommunications monopolist Beltelecom.

In 2016, Belarus had a deficit in foreign trade in oil and petroleum products, according to Mr. Lukashenka. «This situation causes serious fears,» the presidential press office quoted him as saying. «The oil refining sector is turning from the economy's flagship to an unprofitable sector.»

«Naftan is barely making ends meet and constantly asking for assistance from the state,» he said.

Mr. Lukashenka warned that the government's significant expenditures on the modernization of the refineries had failed to pay off.

While acknowledging that the refineries' struggles were partially due to the sharp fall in world oil prices in recent years, Mr. Lukashenka stressed that flaws in the modernization projects were also to blame. He reportedly expressed doubt that the refineries would manage to complete their modernization in 2019 as promised by the government.

Mr. Lukashenka announced that the modernization of the refineries would be overseen by newly appointed presidential aide Alyaksandr Kosinets.

Belarus' exports of petroleum products totaled 2.6 million tons in January-March 2017, down by 46 percent compared with the same period of the previous year. The fall is linked to a year-on-year drop in the supply of Russian crude oil to the refineries amid a bitter energy dispute that has since been resolved.