Ukrtatnafta is going to stop the purchase of raw materials production company Ukrnafta. The reason he called the unfavorable Economics of such transactions. This is referred to in the letter from the head of Ukrtatnafta Pavel Ovcharenko, the head of the management Board of Ukrnafta, Mark Rollins, which has editorial … .
Ukrtatnafta refers to the decree of the Cabinet of Ministers, according to which the starting price of Ukrainian oil at auction is determined on the basis of the reference GFS on the customs value of imported oil.
“The use of this norm has led to the fact that at the last auction, the starting price of Ukrainian oil made 14641 UAH/t on the field, which corresponds to $62,5/bbl. At the same time, Brent oil futures were in the range of $56-58/bbl. Accordingly, Ukrtatnafta considers economically feasible to buy Ukrainian oil, which equated in price to the premium grade Azeri Light”, the letter says Ovcharenko.
In Ukrtatnafta said that because of the unfavorable purchase of Ukrainian oil, it is going to switch to processing of raw materials from Azerbaijan.
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The activities and Ukrtatnafta and Ukrnafta key influence of the Private group.