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Putin and Lukashenko reach agreement on oil and gas prices

Christian Fernsby |
Belarus and Russia have found ways to compensate for Belarus’s expenses that were caused by a Russian tax maneuver in the oil sector, said Belarusian Ambassador to Russia Vladimir Semashko after a meeting between Vladimir Putin and Alexander Lukashenko in Sochi.

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According to Semashko, the leaders have found ways to compensate part of Belarus’s losses arising from the tax maneuver roughly $400 million per year, the amount that Minsk earned through favorable oil prices.

Semashko said that the compensation will not be for the full amount. Nevertheless, it will guarantee that the Belarusian oil refineries get through 2020 “painlessly”, he noted.

The matter of full compensation can be resolved after January 1, 2022, since the two countries’ tax legislation should be unified, the ambassador said. “The goal has been set to resolve the matters of unifying taxation over the course of 2020-2021 and start implementing it as of January 1, 2022, as agreed,” said Semashko.

Russia and Belarus’s positions on oil and gas matters have become much closer, confirmed Russian Minister of Economic Development Maxim Oreshkin.

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