Belneftekhim
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Belneftekhim or Belnaftahim (full name: Belarusian state concern for oil and chemistry; ; ) is an association of petrochemical companies in
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
, subordinated to the
Council of Ministers Council of Ministers is a traditional name given to the supreme Executive (government), executive organ in some governments. It is usually equivalent to the term Cabinet (government), cabinet. The term Council of State is a similar name that also m ...
. It manages these companies and regulates several aspects of the petrochemical sector, including setting retail prices for gasoline.


Profile

Belneftekhim was created in April 1997. According to the charter issued by the
Council of Ministers Council of Ministers is a traditional name given to the supreme Executive (government), executive organ in some governments. It is usually equivalent to the term Cabinet (government), cabinet. The term Council of State is a similar name that also m ...
, Belneftekhim is given powers to manage petrochemical companies of the concern, coordinate and assist their development, set retail prices (including gasoline), give permission for the construction of gas stations and several other rights. Belneftekhim also issues licenses to carry out import and export operations with petroleum products.Новый «секретный» игрок нефтяного рынка
/ref> In 2019, 70% of petrochemical production (petroleum products and chemical production) was exported, total exports of Belneftekhim companies amounted to US$8 billion. In January—November 2020, total exports amounted to US$4.2 billion. The companies produced 1.56 million tons of crude oil and processed 14.7 million tons of crude oil. Belneftekhim's subsidiaries operate 571 of 865 gas stations in Belarus (65%).Топ-10 крупнейших игроков на топливном рынке Беларуси
/ref> Due to major market share and right to set fuel prices Belneftekhim is sometimes considered a
monopoly A monopoly (from Greek language, Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic Competition (economics), competition to produce ...
in the fuel retail market.Высокие цены на белорусский бензин – плата и за Таможенный союз
/ref> In January—March 2021, Belneftekhim raised fuel prices 8 times (+4.3% in total), citing growing oil prices as a reason. Belneftekhim's published justifications of fuel price increases are criticized occasionally. Belneftekhim companies control the production and local distribution of petroleum products and chemicals, while their export largely relies on companies owned by businessmen who are close to
Alexander Lukashenko Alexander Grigoryevich Lukashenko (also transliterated as Alyaksandr Ryhoravich Lukashenka; born 30 August 1954) is a Belarusian politician who has been the first and only president of Belarus since the office's establishment in 1994, making hi ...
(oligarchs). In 2000s and early 2010s, Yury Chyzh (companies Trayplenergo/Triple-Energo, Neonafta, Belneftegaz) and Anatoly Ternavsky (Univest-M) owned major companies involved in importing raw petroleum from Russia and exporting the finished goods to the EU and Ukraine.Kłysiński, Kamil
Big business in Belarus - its genesis, conditions and prospects
OSW Commentary. Centre for Eastern Studies. No 113. 9 September 2013.
In 2012, after the EU imposed sanctions on Chyzh and Ternavsky for sponsoring Lukashenko's regime, an Interservis (Интерсервис) company owned by Chyzh's associate Mikalai Varabei replaced some of the sanctioned companies. Another Chyzh's associate Aliaksei Aleksin got ownership of many Chyzh's assets, renaming it to Energo-Oil and resuming foreign operations. At the same time, state-owned CJSC Belarusian Oil Company or BNK () controlled by Belneftekhim also exported petroleum products to the EU, UK and Ukraine. In 2021, Office of Financial Sanctions Implementation of the British
HM Treasury His Majesty's Treasury (HM Treasury or HMT), and informally referred to as the Treasury, is the Government of the United Kingdom’s economic and finance ministry. The Treasury is responsible for public spending, financial services policy, Tax ...
stated: "There are reasonable grounds to suspect that BNK (UK) Ltd Company is controlled directly or indirectly by the President of Belarus, Alexander Lukashenko". In 2020, CJSC New Oil Company or NNK (, 75% are allegedly owned by Varabei's InterservisКак нефтебарон Лукашенко скрывается от санкций. Расследование «Белсата»
/ref>) started operations in Belarus with Belneftekhim's approval, and in August 2021 it was listed among the top-10 companies paying the most taxes to the budget of Minsk.


International sanctions

Belneftekhim has been subject to
United States sanctions United States government sanctions are financial and trade restrictions imposed against individuals, entities, and jurisdictions whose actions contradict U.S. foreign policy or national security goals. Financial sanctions are primarily administ ...
following waves of political repressions and human rights abuse by the regime of
Alexander Lukashenko Alexander Grigoryevich Lukashenko (also transliterated as Alyaksandr Ryhoravich Lukashenka; born 30 August 1954) is a Belarusian politician who has been the first and only president of Belarus since the office's establishment in 1994, making hi ...
in Belarus. In 2007, the
U.S. Treasury The Department of the Treasury (USDT) is the Treasury, national treasury and finance department of the federal government of the United States. It is one of 15 current United States federal executive departments, U.S. government departments. ...
has imposed sanctions against Belneftekhim and its affiliated companies because of the conglomerate "being controlled by oppressive Belarusian president Alexander Lukashenko". On 13 November 2007, the United States issued sanctions on Belneftekhim for violating human rights by
Alexander Lukashenko Alexander Grigoryevich Lukashenko (also transliterated as Alyaksandr Ryhoravich Lukashenka; born 30 August 1954) is a Belarusian politician who has been the first and only president of Belarus since the office's establishment in 1994, making hi ...
during and after
2006 Belarusian presidential election Presidential elections were held in Belarus on 19 March 2006. The result was a victory for incumbent, President Alexander Lukashenko, who received 84.4% of the vote. However, Western world, Western observers deemed the elections rigged. The Organ ...
. The sanctions included asset freeze and a ban on U.S. persons transacting or doing business with Belneftekhim. In 2011, following the violent crackdown of opposition protests after the falsified
2010 Belarusian presidential election Presidential elections were held in Belarus on 19 December 2010. The elections had originally been planned for the beginning of 2011. However, the final date was set during an extraordinary session of the National Assembly on 14 September 2010. ...
, U.S. citizens were prohibited from doing business with several companies of the Belneftekhim conglomerate: Naftan oil refinery, Grodno Azot fertilizer manufacturer, Grodno Khimvolokno fiber manufacturer and
Belshina Belshina (, ) is a tire, tyre manufacturer in Belarus. The name is an abbreviation for "Belaruskaya shina", or "Belarusian Tyre". The Belarusian tyre works is located in the Belarusian industrial city Babruysk. Belshina produces over 180 tyre s ...
tire factory. Belneftekhim was additionally sanctioned for making several deals with
Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...
. In 2011, Belneftekhim's company Belorusneft was sanctioned by the United States Department of State for doing business with Iran. In 2017, three USA states listed Belneftekhim in their lists of companies doing business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors. Belneftekhim is also active in
Ecuador Ecuador, officially the Republic of Ecuador, is a country in northwestern South America, bordered by Colombia on the north, Peru on the east and south, and the Pacific Ocean on the west. It also includes the Galápagos Province which contain ...
,
Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...
,
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
and
Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many Federal Dependencies of Venezuela, islands and islets in the Caribbean Sea. It com ...
. The sanctions against Belneftekhim were temporarily suspended in 2015. In April 2021, full-scale sanctions against Belneftekhim as an entry in the
Specially Designated Nationals and Blocked Persons List The Specially Designated Nationals and Blocked Persons List, also known as the SDN List, is a United States government sanctions/embargo measure targeting U.S.-designated terrorists, officials and beneficiaries of certain authoritarian regimes, a ...
were renewed following brutal political repressions against the opposition after another rigged presidential election that took place in August 2020 and was accompanied by mass protests across Belarus. On 9 August 2021, the US has added Belneftekhim CEO Andrei Rybakov to the SDN list. In 2022, Canada and Ukraine also imposed sanctions on Belneftekhim. In August 2023, the concern was blacklisted by of the European Union. In the same month, Switzerland, North Macedonia, Montenegro, Albania, Ukraine, Bosnia and Herzegovina, Iceland, Liechtenstein and Norway joined these sanctions.


Labour rights issues, political repressions

In August 2020, groups of workers at Belneftekhim-controlled companies Naftan and Grodno Azot participated in nationwide protests against Alexander Lukashenko following a rigged presidential election. In October 2020, several hundreds of workers at Grodno Azot, a company of Belneftekhim, have participated in the strike as part of nationwide protests. Company management has threatened striking workers, fired them and replaced them with
Strikebreaker A strikebreaker (sometimes pejoratively called a scab, blackleg, bootlicker, blackguard or knobstick) is a person who works despite an ongoing strike. Strikebreakers may be current employees ( union members or not), or new hires to keep the orga ...
s from other Belneftekhim companies. Several protesting workers were arrested. At Naftan, workers have collected over three thousand signatures and held protests demanding resignation of Alexander Lukashenko and new presidential elections A strike was called off after threats and intimidation of workers by company management. On 14 August 2020, Belneftekhim stated that employees of 4 member companies ( Naftan, Grodno Azot, Mogilevkhimvolokno and Khimvolokno in Grodno) had special meetings with the management discussing non-economic issues without stopping the factories. In September 2021, several Grodno Azot workers were detained. Their detention was connected with the threat of
Alexander Lukashenko Alexander Grigoryevich Lukashenko (also transliterated as Alyaksandr Ryhoravich Lukashenka; born 30 August 1954) is a Belarusian politician who has been the first and only president of Belarus since the office's establishment in 1994, making hi ...
that workers who reveal the ways of bypassing the sanctions would be put in jail for a long time.В Беларуси задерживают рабочих, которые заявляли о забастовках на своих предприятиях – "Вясна"
/ref>


Companies

On 28 February 2014, state-owned fertilizer producer
Belaruskali Belaruskali (, ) is one of the largest state-owned companies of Belarus. It is one of the largest producers of potash fertilizers in the world, accounting for 20% global supply as of 2019.Belorusneft (Белоруснефть) — oil production; the company was excluded from Belneftekhim on 16 July 2021. Western sanctions were suggested to be the reason of the exclusion.Бегом от санкций. «Белоруснефть», как когда-то «Беларуськалий», вывели из состава «Белнефтехима»
/ref> * State unitary enterprise Belorusneft—Minskavtozapravka (Белоруснефть-Минскавтозаправка) — gas stations * Unitary enterprise Belarusian oil trading house (Белорусский нефтяной Торговый Дом) — wholesale trade *
Belshina Belshina (, ) is a tire, tyre manufacturer in Belarus. The name is an abbreviation for "Belaruskaya shina", or "Belarusian Tyre". The Belarusian tyre works is located in the Belarusian industrial city Babruysk. Belshina produces over 180 tyre s ...
(Белшина) — tires * OJSC Gomel chemical plant (Belfert; Гомельский химический завод) — phosphate fertilizers, sulphuric acid, oleum * OJSC Gomeltransneft Druzhba (Гомельтранснефть «Дружба) — operator of Belarusian segment of oil pipeline Druzhba * OJSC Grodno scientific, research and project institute of nitrogen industry and organic synthesis products * OJSC Grodno Azot (Гродно Азот) — nitrogen fertilizers * OJSC Zavod gornogo voska (Завод горного воска) — mineral wax plant * Polimir branch of OJSC Naftan (Завод Полимир) — chemical plant * OJSC Krion (Крион) — oxygen, argon, other gases * OJSC Lakokraska (Лакокраска) — paints and varnishes * OJSC Mozyr Oil Refinery (Мозырский нефтеперерабатывающий завод) — oil refinery * OJSC Naftan (Нафтан) — oil refinery * OJSC Polotsk-Steklovolokno (Полоцк-Стекловолокно) — fiberglass * OJSC SvetlogorskKhimvolokno (СветлогорскХимволокно) — synthetic fibers * Khimvolokno branch of OJSC Grodno Azot — synthetic fibers * Novopolotsk branch of OJSC Gomeltransneft Druzhba — operator of Belarusian segment of Unecha—Polotsk—Ventspils pipeline


References

{{Reflist, 30em


External links


Official site
Oil and gas companies of Belarus Companies established in 1997 1997 establishments in Belarus Companies of Belarus Belarusian entities subject to U.S. Department of the Treasury sanctions