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Belarus estimates losses from Russia’s tax maneuver at $400 mln in 2020

Given the losses from the tax maneuver in 2019, this figure will reach $800 mln, the minister of finance of Belarus said

MINSK, October 10. /TASS/. Losses of Belarus in 2020 from a tax maneuver in the oil sector of the Russian Federation will amount to $400 mln, Minister of Finance of Belarus Maksim Yermolovich told reporters.

"Given the losses from the tax maneuver in 2019, this figure will reach $800 mln. This is the total figure," he said.

When asked about the progress in negotiations with Moscow on compensating Minsk for economic losses from a tax maneuver, Yermolovich said "So far the parties are in the process."

At present, Belarus and Russia are negotiating on topical issues of Belarusian-Russian cooperation. Tax maneuver in the Russian oil industry is among the topics of discussion. Belarus wants compensation for losses from worsened oil trade conditions, and Russia in response proposed to deepen integration in accordance with the 1999 Union State Treaty.

Additional costs for Belarus arise due to the expected growth of price of Russian oil and a decline in export duties on petroleum products. Minsk estimated its losses for a total of six years in the amount of up to $11 bln, and in 2019 - at $400 mln with an oil price of $70 per barrel.