Page 15 - FSUOGM Week 08 2023

FSUOGM NEWS IN BRIEF FSUOGM

a year ago Black Sea ports have seen a 25% growth in ship-to-ship transfers, one of the Default), Ukraine Business News reported
increase in volumes as Russia’s customer easiest ways to dodge sanctions and disguise on February 10.
profiles change and the importance of the origin of Russian oil, which have been The state-run company struggled last
Africa and Asia grows. most visible off the Spanish North African year following Russia’s full-scale invasion
As bne IntelliNews reported at the start city of Ceuta and off the Greek coast near and is currently in discussions with
of the conflict in Ukraine, oil sanctions Kalamata, according to Bloomberg based on bondholders over the restructuring of
have been expected to be very leaky from a study of ship destination and cargo data. Eurobonds originally due in July 2022 (for
the start and ship-to-ship transfers are At least 30 cargoes have been transferred $335mn) and November 2026 (for $500mn).
a common way of disguising the origin between ships in those two locations since The failure to come to an agreement with
of sanctioned oil cargo. Greek tankers the start of the year. Twelve more Aframax creditors contributed to Fitch’s RD rating.
have been especially co-operating in tankers that loaded in the Baltic since late “Russia's invasion of Ukraine (CC) has
the transport of Russian oil, despite the January look likely to transfer their cargoes affected Naftogaz's performance and cast
sanctions, according to a report by Institute to other vessels in the Mediterranean, based uncertainty over our financial projections
of International Finance (IIF) that found on their destination signals, the newswire for the company's performance. Its liquidity
they had increased their share from 35% of reports. position is weak and is affected among other
the total shipped Russian oil to 55% now, factors, by the need to import natural gas
as bne IntelliNews reported in a piece on from Europe at high prices, even though
leakage via pipelines and tankers. Armenia's imports of Russian its import needs have reduced on weaker
At present, the Grace Felix is seized and domestic demand,” Fitch stated.
lying at anchor 10 km from the coast of natural gas grew by 6% in 2022 Naftogaz will submit an alternative
Durres. The investigators of the Prosecutor’s consent solicitation for the Eurobonds. The
Office are continuing to work in order to Gazprom-Armenia, the Russian gas company successfully came to an agreement
document this illegal activity and identify giant's natural gas distributing company with creditors to defer the payment on a
the individuals involved. The ship’s cargo in Armenia, has reported a 6.1% increase separate Eurobond (€600mn) due in July
will be subject to further examination to in Armenia's import of Russian natural 2024 for two years.
determine its origin and whether it is in gas in 2022 compared to the previous Last month, Fitch stated that Ukraine
violation of any sanctions or embargoes. year, reaching approximately 2.6bn cubic is spiralling towards default, rating the
The jump in oil exports suggests that the meters. The company also noted a growth country’s Long-Term Foreign-Currency
oil export business is continuing as normal, in consumer deliveries, with about 2.5bn IDR at 'CC'. The agency said that it has
although some analysts have argued that cubic meters delivered in 2022, compared to de-linked Naftogaz’s rating from that of the
the cut in oil production, due to go into about 2.4bn cubic meters in 2021. state with its current rating reflecting its
effect next week, was forced on the Kremlin, Of the total amount delivered, the energy Standalone Credit Profile (SCP); however,
unable to find enough customers to buy all and industry sectors received 502.9mn will review the company’s impact on the
its output. and 296.5mn cubic meters of natural gas, state following restructuring.
The high volumes of crude being shipped respectively. Households received 812.1mn Naftogaz is one of Ukraine’s most
out of Russia's western ports, which now cubic meters, while compressed natural gas important companies and has kept the
appears to include volumes previously fueling stations received 504.8mn cubic country going through the brutal winter
piped to Poland and Germany, according to meters. period. Last year the company paid nearly
Bloomberg, have left the country largely on Gazprom-Armenia, a subsidiary of UAH100bn ($2.7bn) in taxes despite the
European tankers. Gazprom, is the exclusive natural gas ongoing war against Russian aggression.
The pressure is on the Kremlin to supplier from Russia to Armenia. It
smuggle oil to Continental ports, as while was founded in 1997 as a joint Russian-
Russia has been using its “ghost fleet” of up Armenian natural gas pipeline project. Then Brussels aims to launch joint
to 600 tankers to transport oil outside the Russian state gas monopolist Gazprom
sanctions regime, as it takes two months for owned 45% of the stock, the Energy gas purchases by April
these ships to sail to Asia and back, Russia is Ministry of Armenia 45% and the ITERA
looking for customers closer to home where company 10%. In 2014, Gazprom became The European Commission aims to launch
ships can make multiple trips a month. the company's sole owner and renamed it a mechanism for joint natural gas purchases
The volume of crude on vessels heading Gazprom Armenia. by April, European Commissioner for
to China and India, plus small flows to Its services include transportation, Economy Paolo Gentiloni said at a press
Turkey and the quantities on ships that have storage, distribution, sales of natural gas, conference last week, warning that there
yet to show a final destination, rebounded and the expansion of gas transportation could be supply scarcity in the coming
in the four-week period, equalling the systems and underground gas storage months.
highest amount observed since Bloomberg capacities. “Energy prices remain well above the
began tracking the shipments at the start of levels seen in recent years and may remain
2022. volatile, while supply shortages might re-
Shipments to China have remained Fitch rates Naftogaz at emerge in the coming months,” Gentiloni
fairly constant, but Bloomberg reports that said. “This is why we intend to put in place
cargoes identified as "Unknown Asia" or Restricted Default a joint purchasing tool no later than the end
"Other Unknown" will end up in India, of this quarter, to support the filling of gas
which has massively expanded its import of Fitch Ratings affirmed the Long-Term Issuer storage ahead of the next filling season.”
Russian crude. Default Rating (IDR) of Naftogaz, Ukraine’s EU member states agreed on a
The Grace Felix case is indicative of the national gas giant, at 'RD' (Restricted mechanism for the joint purchase of

Week 08 22•February•2023 www. NEWSBASE .com P15