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Significance

Belarus is facing pressure from Moscow to direct exports from its refineries through Russian rather than Latvian and Lithuanian ports. Moscow has the upper hand as it provides a discount on crude oil sold to Belarus and refined there, and probably feels it has a right to benefit from the export trade.

Impacts

Belarus will look for alternative sources of crude oil and possibly natural gas.

Latvia and Lithuania will find it hard to make up any revenues lost from Belarusian export shipments.

Other Russian firms may lobby the Kremlin to pressure Belarus and other former Soviet states on their behalf.

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