Business news from Ukraine

Tariff for oil transit through Ukraine to increase by 18.3%

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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UKRTRANSNAFTA REDUCES OIL TRANSIT BY 8%

Oil transit through the territory of Ukraine by pipeline transport to European countries and Belarus in January-April 2021 decreased by 8.3% compared to the same period in 2020, to 3.848 million tonnes, according to the data of JSC Ukrtransnafta.
According to the calculations of the Interfax-Ukraine agency, in particular, transit in the direction of Budkovce (Slovakia) amounted to 2.656 million tonnes (6.4% less from January-April 2020), Fenyeslitke (Hungary) – 832,000 tonnes (less by 24.4%), Mozyr (Belarus) – 359,600 tonnes (more by 37.5%).
The volume of oil transportation to refineries of Ukraine for the four months of 2021 amounted to 729,700 tonnes, which is 12.7% less than in January-April 2020. In particular, oil transportation along the Odesa-Kremenchuk route amounted to 284,300 tonnes (less by 20.8%).
Thus, in January-April 2021, the total transportation of oil through the company’s pipelines amounted to 4.578 million tonnes (less by 9.1%). The share of transit volume in it is 84.1%, pumping to the country’s refineries – 15.9%.
In April 2021, oil transit through Ukraine by pipeline transport increased by 18.4% compared to the same month in 2020, to 888,700 tonnes, in particular to Budkovce – 670,000 tonnes (more by 23.5%), Fenyeslitke – 129,700 tonnes (less by 37.6%), Mozyr – 89,000 tonnes (more by 100%).
Pumping at Ukrainian refineries last month decreased by 16.6%, to 203,700 tonnes.

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