Belarusian oil firm Belorusneft has cancelled its export plans to Germany via the Druzhba pipeline for 2022 after the European Union slapped sanctions on the company, Reuters reported, citing trading sources familiar with the matter. The EU imposed new sanctions on several Belarusian individuals and entities to increase the pressure on President Alexander Lukashenko.
Belorusneft exports most of its oil output to Germany through Russia’s Druzhba pipeline. Belarus is scheduled to supply about 450,000 tonnes of oil to Germany this quarter. Traders supply the crude to the PCK Schwedt refinery in Germany, a joint venture of Russia’s Rosneft and Italy’s Eni. Trades said Belorusneft might divert its oil for export to its domestic refineries, which could cut Russian oil flows to the country.
Under the cancelled plan, Shell agreed to buy 40,000 tons of crude every month in 2022 from Belorusneft. Traders said the Anglo-Dutch company could offset oil supplies expected from Belorusneft with its own output from Russia’s Salym Petroleum Development, in which it is a shareholder. Belorusneft has yet to comment regarding the cancelled export plan.
