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 Russia blocks export of diesel and sharply reduces deliveries of LPG to Ukraine

Russia has sharply reduced export of liquefied natural gas and diesel fuel in Ukraine since early October while the delivery of Russian diesel to the Ukrainian consumers has been completely stopped last week.

Liga informs citing representatives of fuel importing companies, Censor.NET reports.

Russian suppliers explain cessation of diesel delivery to Ukraine by the Russian authorities' ban on the export of petroleum products, which can be used by the Ukrainian army. The reduction of exports of liquefied natural gas is not explained at all, the newspaper writes.

Such actions have already caused appreciation of diesel fuel on alternative supply routes and substantial increase of LPG price at petrol stations around the country.

The price of gas at petrol filling stations has increased by 25 percent over the past two weeks and continues to grow.

Russian suppliers started requesting end user certificates for the fuel from their Ukrainian counterparts explaining it by the ban on the supply of petroleum products that can be used by the Ukrainian army in the future.

Read more: Russia intends to impose absolute embargo on Ukraine's agroexport in 2016, - Yatseniuk

"Russian companies have been refusing to conclude any agreements and enter into petroleum products export contracts without such certificates since late September. Still it is not clear where the Ukrainian companies should acquire these certificates," an owner of an oil trading company said.

"The supplies of diesel fuel from Russia have completely been stopped since the end of last week. We have just ceased entering into contracts for this commodity until the situation clarifies," the oil trader said.

However, according to 'A-95' consulting firm's CEO Serhii Kuiun, the shortage of diesel fuel is not expected in the Ukrainian market.

"The deliveries of diesel fuel by sea through Kherson and Pivdennyi Seaport resumed last week. The imports from Poland and Lithuania also increased," he said.

 
 
 
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