Naftan

OAO Naftan is a large petrochemical complex. It produces various types of fuels, lubricating oils and bitumen, aromatic hydrocarbons and petrochemicals.

History

2021

Russia has stopped supplying oil to the enterprise

Russia stopped supplying oil to the largest refinery in Belarus, which came under US sanctions for "election fraud" and "flagrant human rights violations" by the Lukashenko regime.

The Naftan refinery, which processed 5.5 million barrels of Russian raw materials monthly in 2020, is absent from the export schedule of Russian oil workers for the third quarter. Deliveries to the second Belarusian plant - Mozyrsky - will continue and amount to 2.36 million tons. In the second quarter, Russia delivered 2.25 million tons to each of the two refineries. The State Department Ministry of Finance USA and Naftan blacklisted SDN at the end of April, giving counterparties 45 days to complete all transactions.

The sanctions entered into force on June 3, but already in May the largest Russian suppliers - Rosneft and Surgutneftegaz - refused to supply the plant.

Industry sources Reuters attributed this to the fear of falling under secondary sanctions, which may be imposed against violators of the US sanctions regime.

Falling under US sanctions

The processing plant with a capacity of 200 thousand barrels per day in April 2021 again fell under US sanctions. The State Department Ministry of Finance USA and Naftan blacklisted SDN in connection with the "falsification of presidential elections" by the regime of President Belarus Alexander Lukashenko, "flagrant violations of human rights" in the republic and "disregard of Belarus for its obligations within the framework of international law."

After that, it became known that oil companies could suspend oil supplies to the largest refinery in Belarus, Naftan. Naftan's counterparties were given 45 days (until June 3) to complete all operations with the plant. But Russian oil workers, supplying 5.5 million barrels per month to the plant at preferential prices, may already suspend the supply of Naftan with raw materials in May. Oilmen fear secondary sanctions - measures that are introduced for violating the sanctions regime, sources say Reuters.

According to them, Rosneft and Surgutneftegas, the largest suppliers of Naftan, which provide 60% of the plant's supply, do not plan to sell oil in May. The remaining 40% is accounted for by TATNEFT, Russneft and Neftis (the latter two belong to Mikhail Gutseriev). "We expect a management decision while we are not signing (contracts)," a Reuters source in one of the companies said.