Business news from Ukraine

Russian oil deliveries to Hungary and Slovakia in transit through Ukraine should resume soon

A Ukrainian transport company reacted positively to the proposal of Slovnaft and MOL to pay transit fees for transporting oil through the southern branch of the Druzhba oil pipeline, the Slovak company said.
“Slovnaft has already made a payment to the company’s account. Based on this, Slovnaft expects the resumption of oil supplies in the coming days. The Russian side also agreed with this decision,” the company stressed.
According to Bloomberg, the Hungarian MOL also transferred the transit payment and expects to resume deliveries in the coming days.
Earlier, Transneft reported that on August 4, Ukrtransnafta stopped the transit of Russian oil through Ukraine due to a failure to pay the transit fee. It was noted that the funds sent on July 22 for transit in August were returned to the account of Transneft on July 28 in connection with the entry into force of EU Regulation 2022/1269. Through the southern branch of the Druzhba oil pipeline passing through the territory of Ukraine, oil supplies are carried out in the direction of the refineries of Hungary, Slovakia and the Czech Republic on the basis of a long-term agreement between PJSC Transneft and JSC Ukrtransnafta for the provision of oil transportation services on the terms of 100% prepayment.
The Hungarian MOL and the Slovak Slovnaft (also part of the MOL group) initiated discussions with the Ukrainian and Russian sides on the possibility of paying a transit fee to MOL or Slovnaft, which would allow oil supplies to be restored.
“The interruption of supplies occurred after technical problems at the bank level due to the payment of transit fees from the Russian side. However, production at the Bratislava refinery is running smoothly, and deliveries to the market are smooth. During this period, the Bratislava refinery is in close cooperation with the national oil transporter Transpetrol, as well as in cooperation with the Slovak Ministry of Economy, uses all the reserves available in the system for processing,” Slovnaft said.
So far, there have been no reports of a solution to the problem of transit to the Czech Republic.
Last year, 12 million tons of Russian oil was transported through Druzhba through Ukraine, including 3.4 million tons to the Czech Republic, 5.2 million tons to Slovakia, and 3.4 million tons to Hungary.

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Hungary is working to expand border crossing points with Ukraine for grain exports

Hungary is working on expanding the border checkpoints with Ukraine Chop-Zahony and Luzhanka-Beregshurani in order to equip corridors for the export of agricultural products bypassing Ukrainian seaports blocked by the Russian Federation.
This was announced by the Parliamentary State Secretary of Hungary Levente Madyar during a meeting with the head of the Transcarpathian Regional Council Volodymyr Chubirko, organized to address issues of current and future humanitarian support for Ukraine by Hungary.
For his part, the head of the Transcarpathian Regional Council promised, as far as possible, to assist in the implementation of all projects planned by Hungary for implementation in Ukraine, and presented the Hungarian official with world-famous stamps and a postcard on the theme of the Russian ship.
As reported, Ukraine, together with Hungary, intends to apply to the European Union to increase the throughput capacity of checkpoints on the Ukrainian-Hungarian border.
“We will apply together to the EU so that we can develop the capacity of transit corridors from both the Ukrainian and Hungarian sides. We are concerned about what the food supply of the world will be like as a result of the war … We are interested in the movement of goods to accelerate. This is not only the Hungarian , Ukrainian or European interest. This is a global interest,” Hungarian Agriculture Minister Ivstan Nadia said last week.
According to the Minister of Agrarian Policy of Ukraine Mykola Solsky, Slovakia and Hungary are logistics corridors in the European market that have not been developed, because Ukraine exported agricultural products mainly through the sea.
“We have fewer checkpoints on the border with Hungary than with Romania or Poland, so we plan to increase it and are already working on it,” the Ukrainian minister stressed.

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UKRAINE INVITED SLOVAKIA, HUNGARY, ROMANIA AND MOLDOVA TO JOIN PROJECT TO INCREASE CAPACITY OF BORDER CROSSINGS

Ukraine plans to develop the Open Border project at border crossings with Slovakia, Hungary, Romania and Moldova.
“We are also implementing similar projects to increase capacity at the borders with other Western neighbors. We are already negotiating to join the Open Border of Slovakia, Hungary, Romania and Moldova,” Ukrainian Infrastructure Minister Oleksandr Kubrakov was quoted as saying in a Facebook post on Monday.
As reported earlier, Ukraine and Poland doubled the throughput at the Krakovets-Korcheva checkpoint modernized as part of the Open Border project.

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POLAND, LITHUANIA, LATVIA, SLOVAKIA, GERMANY AND HUNGARY SIMPLIFYING TRAVEL FOR HUMANITARIAN AID CARRIERS TO UKRAINE

Poland, Lithuania, Latvia, Slovakia, Germany and Hungary have introduced permit-free travel for humanitarian cargo carriers to Ukraine, according to the Telegram channel of the Ministry of Infrastructure of Ukraine.
The matter concerns the release of carriers from any additional conditions, in particular the need to obtain permits for international freight traffic. This is necessary for the prompt delivery of humanitarian cargo during martial law.
To cross the border with Lithuania, Latvia and Slovakia, you do not need to submit information about the carrier and vehicle.
“We thank our European partners for their support. The Ministry of Infrastructure of Ukraine continues to work with foreign partners in order to speed up the process of transporting humanitarian cargo in an extremely difficult period for Ukraine,” the ministry stressed.

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UKRAINE DISAPPOINED WITH HUNGARY’S DECISION TO SIGN CONTRACT WITH RUSSIA’S GAZPROM FOR SUPPLY OF GAS BYPASSING UKRAINE

Ukraine is surprised and disappointed with Hungary’s decision to sign a new long-term contract with Russia’s Gazprom in Budapest on September 27, 2021, regarding gas supply to Hungary bypassing Ukraine, the Ukrainian Foreign Ministry said in a statement.
“We view this as nothing but a political, economically unfounded decision, which has been made to the benefit of the Kremlin and to the detriment of national interests of Ukraine and Ukrainian-Hungarian relations, in violation of the principles of the Treaty of Neighborliness and Cooperation between Ukraine and the Hungarian Republic dated December 6, 1991,” the statement said.
The Ukrainian Foreign Ministry has initiated a delay of the next meeting of the Joint Ukrainian-Hungarian Intergovernmental Economic Cooperation co-chaired by the two foreign ministers, which was planned for September 29-30.
“Earlier today, the Ukrainian Foreign Ministry initiated a delay of the Commission meeting, considering that the Hungarian-Russian gas agreement will have a substantial influence on the energy security of Ukraine and Europe, and will create new circumstances that require a comprehensive analysis of risks and threats and coordinated efforts of countries of the region in order to minimize its negative implications,” the statement said.
The Ukrainian side will also apply to the European Commission to provide an assessment of the conformity of the new Hungarian-Russian gas agreement with European energy legislation.

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DISCONTINUING GAS TRANSIT ACROSS UKRAINE WOULD DAMAGE HUNGARY

Hungary is interested in the continuation of natural gas transit across Ukraine, Hungarian Foreign Minister Peter Szijjarto said.
“I don’t understand why not ship gas via the southeastern route [after the launch of the Nord Stream 2 gas pipeline]. Hungary views this matter from a strategic standpoint, because the absence of transit across Ukraine would cause damage to our country,” Szijjarto said at a press conference following negotiations with Russian Foreign Minister Sergei Lavrov.
Each country should make decisions on sources and routes of energy supply primarily based on its own national interests,” he said.

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