English

Oil refining industry hit by sharp output drop

The Belarusian oil refining industry's output plunged by 32.8 percent year-on-year in the first half of 2010, said the National Statistics Committee, BelaPAN reports.

The industry's output totaled 11,655.3 billion rubels ($3.88 billion) from January through June.

Belarus is to receive this year 6.3 million tons of Russian oil duty-free for domestic consumption, but the rest of the amount to be supplied to Belarus by Russia, or around 15.2 million tons, is subject to the full export duty rate unless the resulting petroleum products are brought back into Russia.

Speaking on June 30, Deputy Prime Minister Uladzimir Syamashka said that 7,385,000 tons of crude oil had been delivered to Belarus' two oil refineries in the first six months of this year, with 3,576,000 tons supplied free of duty.

Belarusnafta supplied the Mazyr oil refinery with 838,000 tons of crude produced in Belarus. Apart from this, 240,000 tons of Venezuelan oil were supplied and 320,000 tons [of Venezuelan oil] more were expected to be supplied in July, Mr. Syamashka said.

The Belarusian government is working to secure enough crude oil deliveries for the full-capacity operation of the two refineries toward the end of this year, the deputy prime minister said.

According to the National Statistics Committee, output also decreased 12.4 percent in the machine tool building and tool making industry, by 2.6 percent in the automotive industry, by 1.4 percent in the walling materials industry and by 1.7 percent in the baking industry.

Output reportedly increased by 21.8 percent in the chemical and petrochemical industry, by 8.6 percent in the iron and steel industry, by 8.2 percent in the building materials industry, by 6.4 percent in the machine-building industry, by 9.4 percent in the food industry, by 11.5 percent in the light industry, by 12.3 percent in the woodworking and pulp and paper industries, and by 11.5 percent in the power generation sector.

The biggest output increase - 23.1 percent - was reported in the chemical industry.

The country's overall industrial output rose by 8.8 percent year-on-year to 72.6 trillion rubels in the first six months.

The government has projected the nation's industrial production to increase by between 10 and 12 percent in 2010.