Capacity Utilization Decline
Belarusian oil refineries Naftan and Mozyr have reduced their capacity utilization due to sanctions and declining exports. Naftan processes 11,700 tonnes of oil daily, translating to 4.3 million tonnes annually, while Mozyr refines 13,700 tonnes per day, down from 25,000 tonnes in 2020.
Domestic Market Focus
In response to sanctions, Belarus has shifted its oil refineries' focus to meet domestic demand, which is approximately 7-8 million tonnes per year. The government aims to increase utilization ratios as the situation stabilizes and exports grow.
Fertilizer Export Strategy
Belarusian nitrogenous fertilizer producer Grodno Azot has reduced capacity to meet domestic needs, with targeted export shipments planned. Full-scale exports to Russia will begin in June, facilitated by fast-track certification for Belarusian fertilizers.
Market Redirection
Traditionally, Belarus exported a significant portion of its petroleum products to Ukraine, which imported $2,351 million worth of fuels from Belarus in 2021. However, Belarus plans to redirect these exports to Russia, adjusting its market strategy in response to geopolitical changes.
