Belarusian Oil Refinery is detrimental
Regardless of the benefits provided by the government to the refineries, Naftan and Mozyr refineries topped the list of the most unprofitable businesses with a net loss in the first half of 2011 of Br 205.6 billion and Br 184.306 billion respectively.
Concern “Belneftekhim” has reported that almost half of its enterprises have reached positive trade balance of over $ 2 billion and met all the planned goals.
The average rate of premium to Russian oil suppliers during the first half of 2011 amounted to about $ 6 per 1 barrel, or more than $ 44 per 1 ton (increased by 4 times). The Belarusian authorities believe it puts the Belarusian refiners in unequal working conditions within the EEA and makes refining at Belarusian enterprises unprofitable.
Regardless of the abolition of export duties on Russian oil Belarusian oil refineries could not make profits, which reduced their attractiveness to investors significantly.
With regard to the positive balance of $ 2 billion reported by “Belneftekhim”, it is not quite true. The concern management is manipulating figures, in particular, while calculating the balance in the composition of export earnings it also accounted for export duty on oil products, which Belarus is obliged to transfer to Russia. Bearing this in mind, in the first half of 2011 “Belneftekhim” should have paid to the Federal Budget over $ 1.2 billion, which implies the real trade surplus of the concern is about $ 800 million
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.