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11.02.2013

Fuel war with Ukraine 9

8:27, — Politics

Fuel war with Ukraine

Ukrainian oil refineries made another attempt to limit the import of fuel from Belarusian refineries.

Similar attempts failed in 2011 and 2012. The result of the current attempt is not clear so far, TUT.by writes.

Owners of Ukrainian oil refineries recently received a complaint form to launch an anti-subsidy probe regarding the import of oil products from Belarus. The complaint form was prepared by the team of Ukrainian deputy PM Yuriy Boiko, who is known as an adherent of duties and quotes on imported oil products to protect Ukrainian refineries. In early 2011, the Ministry of Energy and Coal Mining led by Boiko initiated a special investigation over the import, but the inter-departamental commission on foreign trade concluded in December 2011 there were no grounds to impose duties. In 2012, the government again considered possibilities of restricting the import, in particular by anti-subsidy probe in relation to Belarus, on initiative of Boiko, but the decision was postponed.

The current complaint of Ukraine's national oil refineries is the starting point for the probe, To launch the investigation, two thirds of Ukrainian refineries, or five plants, should sign the complaint. Refineries of the Privat Group owned by billionaire Ihor Kolomoyskyi Ukrtratnafta, NPK Halychyna and Neftekhimik Prikarpatia are reported to have signed the complaint. Shebelinsky Gas Processing Plant (belonging to Ukrgazdobycha) is expected to sign the document taking into account plant's state status. According to OilNews, TNK-BP company (owns LINIK refinery) took a break and hasn't put its signature yet. After the refinery halted operations in March 2012, TNK-BP company has been working only on oil from Belarus under a tolling agreement and owns a stake in Mozyr oil refinery. Lukoil (owns Lukoil Odessa refinery) seems to have the same motives. Lukoil is among the largest companies working on tolling agreements in Belarus and an owner of a large filling station network.

According to Forbe's source close to top executives of several Ukrainian oil refineries, oil processing plants were proposed to set duties of $180.84 per tonne of Belarusian petrol and diesel fuel that increase their retail cost by 1.3 hryvnias. The duty may be imposed for a period of 5 years.


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