Lukashenko wants officials to harder look for oil, better manage existing mineral resources

On the whole, about 50 kinds of mineral resources have been discovered in Belarus. The country is in Europe’s top 10 in terms of their availability. However, Aleksandr Lukashenko is against self-complacency. This is why he hosted the conference to review what the problems are and where it is necessary to step up efforts.

“Time has come to compare notes. And find solutions to the most problematic issues you have not worked on sufficiently enough. There are plenty of those. Although it stands to reason that we have rather successful industries,” the head of state said.

The state of the stock of mineral resources and its further development were already discussed at a similar government conference eight years ago. Instructions were also given when Andrei Khudyk was appointed natural resources and environmental protection minister in 2017. “Back then you and I said that Belarus’ natural riches on the surface have been studied rather well. But we don’t know everything about the subsurface resources. This is why it is necessary to step up geological prospecting,” the head of state said.

The president emphasized the significance of domestic mineral resources and raw materials because sovereignty and the stable development of the economy depend on them. It is particularly topical now in the face of the sanctions-fueled pressure.

However, not only natural resources were on the agenda. Since heads of all the regions were present, participants of the conference discussed the beginning of spring field works: the state of winter crops, soil cultivation, sowing, examination of vehicles and machines. Deputy Prime Minister Leonid Zayats presented a detailed report on the matters.

Another agricultural matter that the president constantly monitors is the animal husbandry industry and, in particular, young animals and the loss of cattle. Sales of agricultural products were also discussed as well as possible problems with sales and the operation of the retail industry. Attention was drawn to services available in small communities and to rural Belarusians – to the matters that Aleksandr Lukashenko had raised at a recent meeting with representatives of the Belarusian National Union of Consumer Societies.

Roads and beautification were also mentioned as traditional tasks for early spring. Aleksandr Lukashenko repeated his instruction to put in order and repair all the motorways in the country by 9 May. Municipal councils of deputies, new members of which had been recently elected, will act as some of the agencies in charge of overseeing the beautification work.

The first thing the president pointed out at the beginning of the meeting is how much oil was extracted in Belarus in the USSR times: about 8 million tonnes per annum or about 9 million tonnes according to some sources. The specialists, who were present at the conference, confirmed the figures. This is why the head of state reasonably wondered why the oil extraction volume had dropped so significantly and what options are available for increasing it.

“Everyone knows the natural and geological conditions in Belarus. We used to extract 9 million tonnes. Let’s say 8 million tonnes. Today we extract approximately 2 million tonnes as well as associated gas and the rest. What is the problem? I am getting explanations that the oil reserves have been depleted. I don’t believe it,” Aleksandr Lukashenko said.

It was noted that Belorusneft enjoys a monopoly in the country’s oil industry. The company truly works quite well and boasts advanced competences. However, an alternative evaluation of the state of affairs in this field was necessary. Particularly with regard to prospecting for new commercial oil reserves.

Specialists note that reserves and the potential are available and the annual increase in discovered reserves confirms it. No, not all the reserves are easy to recover or economically expedient to extract taking into account the geological conditions of where this oil is. Extracting this oil to the detriment of the company is not the idea. The main task is to work better. It is necessary to thoughtfully look for new oil deposits wherever possible and allocate the necessary resources. All the more so because neighboring countries, in particular, Russia explore and extract oil in similar conditions after all. It is important for everyone to work hard and to do one’s best for it.

As another problem that needs to be promptly addressed the president mentioned the insufficient utilization of the production capacity for extracting and mining Belarusian raw materials. The government registered the following utilization rates in 2018-2023: glass and molding sands - 39%, refractory clays - 47%, chalk, marl, clay and tripoli for cement - 53%, dolomite - 38%, facing stone - 44%.

“We have to utilize virtually 100% for every resource if we have created these capacities. We are underperforming by half!” the president criticized. “Meanwhile, despite the availability of sufficient raw materials in the country, over the past year we imported almost 300,000 tonnes of pebble stones, gravel, crushed stone. The things that we have. More than $18 million was spent. 50,000 tonnes of natural sands was purchased for almost $5 million. These are huge numbers.”

“Prices for mineral resources grow higher year after year. Instead of taking measures and making use of what is literally under our feet, we pay without complaints,” Aleksandr Lukashenko pointed out.

The president cited a concrete example concerning clay purchases. Belarus imports this raw material instead of developing the domestic deposits.

The glass industry does not have all the silica sand it needs, the head of state continued. At the same time the reserves that have been prospected so far can solve the problem for two years right away. There is a bunch of examples of insufficiently good logistic schemes.

“And what do we have as a result? Underperforming manufacturing facilities and the reduction of the output. In turn, they drag down the other indicators,” the president stated and cited some fresh data concerning several imports. In 2023 enterprises run by the Architecture and Construction Ministry reduced the export of road metal by a quarter. The Energy Ministry reduced the export of peat products by nearly half. “Understandably, they lost earnings as well. Everyone blames it on sanctions. There are no sanctions for you. Look for other markets,” the head of state gave the instruction.

The president also pointed out shortcomings in the operation of the applied science center for geology. The enterprise takes care of prospecting for all kinds of minerals. “The State Control Committee says that the production assets of the enterprise have deteriorated by 90%,” Aleksandr Lukashenko said. By the way, as he analyzes the performance of entire industries and enterprises, the president manages to notice even such seemingly minor details. In this case he was critical of the State Control Committee’s evaluation of the deterioration rate of the geology center’s production assets. He wondered how the committee had calculated the percentage and why it equals 90% instead of 88%.

“In 2022 I decided in favor of enhancing this physical infrastructure. As many as 21 units of modern vehicles, machines, and equipment were bought over the course of two years. What is the result?” the head of state continued.

Aleksandr Lukashenko also addressed a specific question to the National Academy of Sciences of Belarus about ways to improve geological exploration: “Do scientists have new methods, programs, and breakthrough technologies?”

“Our common goal is not only to make products while using as many domestic raw materials as possible. There are three whales, three growth drivers that will enable us to continue developing. Those are effectiveness, import substitution, and export,” the president said.

The head of state drew attention to the need to prevent unwarranted brokerage and import of the kinds of products that are already made in Belarus.

Aleksandr Lukashenko urged to step up the quality of work: “Let’s agree that all the approaches to quality of work should be revised in the Year of Quality. If there are systemic problems that require my interference, tell me about them. Decisions will be made right away.”

“There are no topics of secondary importance in economy and there can be none because the country’s sovereignty and the nation’s wellbeing depend on the stability of the economy. It is the most important thing,” the president concluded.