OREANDA-NEWS. April 21, 2010. In the first quarter of 2010 the Belarusian oil refineries performed well and posted profits, Prime Minister Sergei Sidorsky reported to President of Belarus Alexander Lukashenko.

“We have agreed that at the end of the first three months of the year you will brief me on the situation in the oil refining and petrochemical industries as the terms and prices for the Russian oil deliveries have changed. The first quarter ended. I would like you to report on the situation. I think you have already analyzed it,” the head of state said addressing the Prime Minister.

“I would also like you to comment on the progress in the implementation of the project in Venezuela,” Alexander Lukashenko noted at the beginning of the working meeting with the Prime Minister.

Sergei Sidorsky informed the President that the government implemented the instructions the head of state made in late 2009. “It is quite important for the budget performance in 2010,” the Prime Minister said.

“As of today the oil that was envisaged for the Q1 2010 was refined. These were 3.6 million tonnes of oil. Although it is below the 2009 level, the oil refineries performed well due to the high technologies and high processing depth. The refineries satisfied the country’s demand for diesel, petrol,” Sergei Sidorsky said.

At the same time several issues in the negotiations with the Russian Federation remain unsettled (although they were discussed at the session of the Union State Council of Ministers in March). Export customs duties on the petroleum products which are used as chemical raw materials have made the export of these products to Belarus difficult, and, in some cases, halted it altogether.

The issue remains still unsettled. In the first three months of 2010 Belarus did not export such oil products from Russia.

Sergei Sidorsky explained that the rules governing oil deliveries envisage both duty-free and dutiable supplies. As for oil products, all the terms for duty-free deliveries have been coordinated. “The Russian Federation, however, insists that the issue is removed from the agenda of the negotiations. The Belarusian government does not agree with it and takes every effort to intensify the negotiations on this issue,” the Belarusian head of government stated.

As for the diversification of oil supplies to Belarus, the issue is under permanent control. Belarus and Venezuela have been discussing oil deliveries to Belarus. An estimated 80,000 tonnes of oil are already on their way to Belarus. The oil will be delivered to the Belarusian oil refineries by May, will be processed and then exported.

The President was also briefed on Belarus’ economic performance in Q1 2010. On the whole, the socio-economic development of the Republic of Belarus in January-March 2010 showed the economy is on the way of gradual recovery.

In January-March 2010 the GDP growth made up 4%, 0.5% up from January-February 2010. It was due to an increase in the industrial output, trade including consumer cooperation, construction and assembly works.

The industrial output grew 5.9% as against 4.2% in January-February 2010.

In Q1 2010 extra warehouse stocks were reduced from 75% to 71%. In Q1 2010 nearly 1.5 million square meters of houses were constructed.

In January-March 2010 foreign trade in goods and services expanded by 17.4%. The Belarusian export increased by 31.2%.

In Q1 2010 inflation in Belarus stood at 2.5%, which is lower than in the neighboring countries.
In January-March 2010 retail trade totaled Br14.1 trillion, up 13.3% from the same months in 2009.

The social security of people is among the issues on top of the President’s and government agenda.

Quarterly targets have been set out for to ensure that the average earnings of the Belarusians reach USD 500 by the end of 2010. The Prime Minister believes that all prerequisites are in place to reach the objective.

In January-February 2010 the average monthly earnings stood at Br1.007,600, or USD 348, up 10.3% as compared to the same months of 2009.