Belarus reached an agreement with Russia’s biggest oil producer to buy crude this month with a premium after the government said it shouldn’t have to more than $4 per barrel as a global oil glut depresses prices.
The government of the former Soviet republic has sought to buy 2 million tons — equivalent to almost 15 million barrels — in April from neighboring Russia but was refusing to pay any premiums to suppliers. Russian producers to largely cut off supplies earlier this year amid a pricing spat, forcing Belarus to import crude from as far as Norway and Azerbaijan to feed its refineries.
“The result of this position is the price at which we will be buying crude in April from Russia — near $4 per barrel,” Prime Minister Sergey Rumas said earlier Thursday in Minsk.
