Business news from Ukraine

Business news from Ukraine

Tariff for oil transit through Ukraine to increase by 18.3%

27 December , 2022  

The tariff on the transit of oil through the territory of Ukraine to Hungary and Slovakia will increase by 18.3% from 1 January 2023 – from EUR11.5 to EUR13.6 per ton, a source in the government told the news agency Interfax-Ukraine.
The information is also confirmed by the Russian media with reference to the data on the website of the Russian Transneft.
In November, Bloomberg reported citing a letter from Ukrtransnafta to Transneft that the Ukrainian side notified the Russian side of the need to increase the tariff by 18% due to the ongoing destruction of the Ukrainian energy infrastructure, which led to a significant shortage of electricity, increasing its cost, a shortage of fuel and spare parts.
In addition, the costs of organizing safe working conditions for personnel and security of the Ukrainian oil transport operator’s facilities have increased.
As earlier reported, the tariff for transit of oil through the Ukraine for Transneft was increased from January 1, 2022 from EUR8.6/ton to EUR9/ton, from April 1, 2022 to EUR11.5/ton.
“Ukrtransnafta in 2021 reduced the transit of oil through the territory of Ukraine by pipeline transport to European countries and Belarus by 3.2% (427.2 thousand tons) compared with 2020 – to 12 million 724.8 thousand tons. In particular, the transit towards Budkovce (Slovakia) amounted to 8 million 594.3 thousand tons (+1.6% compared to 2020), 3 million 411.5 thousand tons (-10.6%) – Feneshlitke (Hungary), 719 thousand tons (-18.2%) – Mozyr (Belarus).
December 5, 2022 the EU and Great Britain imposed an embargo on the purchase of Russian oil, as well as participation of their companies in the transportation of Russian oil by sea and the provision of relevant services. Hungary, the Czech Republic and Slovakia managed to obtain an exception to the embargo on Russian oil from the EU.

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