OREANDA-NEWS. November 17, 2009. Efficient transit of Belarusian oil products via Baltic ports will only be possible if Belarusian forwarders have their own terminals in ports, therefore, Belarus should immediately start negotiating leasing, buying or building a terminal in one of Baltic seaports, a representative with Belarusian Oil Company (BOC) told.

“Five years ago Belarusian exporters were selling their products at the gates of the refinery or on the border, thus losing serious transit dividends. The losses were very substantial, because annual transit through Latvian ports was at 7 million tonnes, or 50% of all Belarusian oil products,” the representative said.

A few years ago Belneftekhim set up Belneftekhim-Baltic in Latvia with 100% Belarusian capital, later renamed Oil Logistic, which was given the functions to arrange F.O.B. exports of Belarusian oil products.

It has become increasingly profitable for oil traders to accumulate oil products in order to sell them at the most profitable market, whereas previously exporters used to reap benefits from competition between seaports.

The new conditions have encouraged traders to build or lease their own terminals to have stocks of products at the ready.

As a result, third parties, including Belarusian traders, were cut off from ports, and Belarusian Oil Company has encountered difficulties when trying to ship fuel oil and even diesel and gasoline, the source said.