Business news from Ukraine

Business news from Ukraine

SOCAR DELIVERS 60% OF DIESEL FUEL BOUGHT UNDER CONTRACT BY UKRZALIZNYTSIA

10 August , 2016  

KYIV. Aug 10 (Interfax-Ukraine) – Socar Ukraine Trade House LLC has shipped 8,400 tonnes of diesel fuel for public joint-stock company Ukrzaliznytsia, and this is 60% of the volume planned to supply as part of the contract signed on August 1 between the two companies, the press service of Ukrzaliznytsia has reported.

As of morning on August 8, 2016, Socar Ukraine Trade House LLC shipped 8,400 tonnes of diesel fuel. The contract signed by the parties on August 1 has been fulfilled almost by 60%,” the company said.

Ukrzaliznytsia said that at present the company does not receive diesel fuel under a contract signed on July 6 with WOG Aero Jet, as the contract price is UAH 20,900 per tonne with VAT, which is considerably higher than average market prices, being UAH 16,900-17,500 per tonne, according to information from Derzhzovnishinform of August 2, 2016. Center for Provision of Production of Ukrzaliznytsia is holding permanent talks with WOG Aero Jet asking to cut the price to the market level.

Ukrzaliznytsia said in the press release that electronic trading to buy 8,000 tonnes and 11,000 tonnes of diesel fuel were announced on August 5.

As reported, Socar Ukraine Trade House LLC first won a tender held by Center for Provision of Production of public joint-stock company Ukrzaliznytsia to supply diesel fuel, although the bidder of similar tenders WOG Aero Jet which price was 15.3% higher challenged the results of the tender.

Commenting on the claim of WOG Aero Jet sent to Ukraine’s Antimonopoly Committee, Ukrzaliznytsia said that the contract is considered signed, as the committee has not made any decision under the claim. The claim was published later than information that the contract is signed.

The press service of Ukrzaliznytsia added that WOG Aero Jet on August 1, 2016 also filed a claim to the National Anti-Corruption Bureau of Ukraine.

Ukraine’s Antimonopoly Committee said that purchase of diesel fuel from Socar by Ukrzaliznytsia is unlawful. The discussion of the claim scheduled for August 5 did not take place and was postponed.