Business news from Ukraine

UKRAINE: POLAND SHOULD LIFT TRANSIT RESTRICTIONS FOR OUR HAULERS

Ukraine has fulfilled all the obligations assumed during the meetings of the Mixed Commissions on International Road Freight Transport, but the Polish side does not honor the agreement at the presidential level, the Ministry of Infrastructure of Ukraine has said.
As reported on the website of the Ministry of Infrastructure, a working meeting of the Ministers of Infrastructure of Ukraine and the Republic of Poland Vladyslav Krykliy and Andrzej Adamczyk was held in Kyiv on Monday, during which the Ukrainian minister pointed out the fact that Ukraine’s fulfillment of its obligations led to a significant increase in the share of use of permits for 2019 by Polish haulers.
Krykliy reiterated that Poland should lift transit restrictions for Ukrainian haulers, since this negatively affects not only trade relations between the two countries, but also with other EU countries.
At the same time, he said that Ukrainian haulers are ready to compete in the two-sided market.
The ministers of Ukraine and Poland also discussed the work of crossing points across the Ukrainian-Polish border, in particular, the Korcheva-Krakovets point.
In addition, Krykliy said that currently the Verkhovna Rada is expected to consider at second reading a bill that solves the problem of VAT payment by work performers and service providers under the so-called “Polish loan,” but asked the Polish side to speed up the work of the construction company to repair the crossing point.
The Ukrainian minister suggested that the Polish side conduct a joint audit to determine the possible reasons for the appearance of queues at the border crossing points with the involvement of a third independent party, and introduce general border and customs control at crossing points to increase their efficiency.

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GAS TRANSIT FROM RUSSIA THROUGH UKRAINE IN 2020 DECREASES BY 38.6%

The transit of natural gas from the Russian Federation through Ukraine in January-September 2020 decreased by 38.6% (by 28.3 billion cubic meters) compared to the same period last year – up to 45 billion cubic meters, head of the Operator of the Gas Transmission System of Ukraine (GTSOU) Serhiy Makohon said on his Facebook page.
According to him, the forecast for transit from Russia through the Ukrainian gas transportation system by the end of the year is 55-56 billion cubic meters.

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UKRTRANSNAFTA INCREASES OIL TRANSIT TO EUROPE

Crude oil transit through Ukraine by pipelines to European countries and Belarus in January-September 2020 increased 5.5% (by 517,200 tonnes) compared to the same period in 2019, to 9.885 million tonnes, according to the data of JSC Ukrtransnafta.
The volume of oil transportation to refineries of Ukraine during this period amounted to 1.911 million tonnes, which is 8.7% (153,600 tonnes) more than in January-September 2019. Including oil transportation along the Odesa-Kremenchuk pipeline amounted to 839,000 tonnes (a rise of 32.2%).
Thus, in the first nine months of this year, the share of transit volume of the total oil transportation (11.796 million tonnes) amounted to 83.8%, the share of pumping to the country’s refineries – 16.2%.
In September 2020, oil transit through Ukraine by pipeline transport decreased 6.7% (by 90,200 tonnes) compared to the same month last year, to 1.255 million tonnes.
Pumping to Ukrainian refineries last month decreased 13.6% (by 32,100 tonnes),to 204,000 tonnes, including transportation of Ukrainian oil amounted to 112,100 tonnes, Azerbaijani oil – 76,800 tonnes, WTI oil – 15,100 tonnes.

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UKRTRANSNAFTA RAISES OIL TRANSIT TO EUROPE AND BELARUS

Oil transit through Ukraine by pipeline to European countries and Belarus in January-August 2020 increased by 7.6% (by 607,500 tonnes) compared to the same period in 2019, to 8.630 million tonnes, according to data from JSC Ukrtransnafta.
The volume of oil transportation to refineries of Ukraine during this period amounted to 1.707 million tonnes, which is 12.2% more than in January-August 2019. In particular, oil transportation along the Odesa-Kremenchuk route amounted to 747,100 tonnes.
Thus, for the eight months of this year, the share of transit volume in the total transportation of oil (10.337 million tonnes) amounted to 83.5%, the share of pumping to the country’s refineries 16.5%.
In August 2020, oil transit through Ukraine by pipeline decreased by 9.2% compared to the same month last year, to 1.262 million tonnes.
Pumping to Ukrainian refineries last month decreased by 0.9%, to 225,600 tonnes. In particular, transportation of Ukrainian oil amounted to 117,100 tonnes, Azerbaijani 43,000 tonnes, and American some 65,400 tonnes.

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RUSSIAN GAZPROM TO PAY $2 BLN FOR GAS TRANSIT ACROSS UKRAINE IN 2020

Naftogaz Ukrainy Executive Board Chairman Andriy Kobolev estimates the proceeds from PJSC Gazprom for the transit of Russian gas through the gas transmission system (GTS) of Ukraine at about $2 billion in 2020.
“I think this year the figure will be close to $2 billion,” he told journalist Yanina Sokolova on the YouTube channel on Tuesday evening.
The head of Naftogaz said that the “take or pay” principle enshrined in the contract during the economic crisis is important for the country in terms of obtaining a guaranteed income from the provision of transit services.

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UKRAINIAN BANS FOREIGNERS IN TRANSIT FROM ENTERING COUNTRY

The Ukrainian government has made changes to the list of exceptions for foreigners who are not denied entry in the country, the Ukrainian Foreign Ministry said on Facebook.
The new rules scrap the provision allowing foreigners who are in transit on the territory of Ukraine to enter the country.
Exceptions from the entry ban are made for people who are spouses, parents, children, or grandparents of a citizen of Ukraine.
Children are given legal status before they become full of age.
If people are sent to Ukraine to study, they only have to go to higher education establishments.
According to earlier reports, the Ukrainian government closed the borders to foreign citizens until September 28.
The restriction did not affect people who have residence permits, are members of international and humanitarian missions, who enter the country in transit, who drive cargo road vehicles, are instructors of NATO states, culture figures, people who have invitations from culture establishments, and also some other categories of people.

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