Page 19 - FSU OGM Week 26
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FSUOGM                                      NEWS IN BRIEF                                          FSUOGM



       program, development, repair, maintenance   against corruption and a major loss of face   Belarus will buy 1.58mn
       of the existing network,” he told a news   for the Zelenskiy administration, which
       conference.                         campaigned on a platform of ending the   tonnes of Russian oil in
         Previously the service was not ready   war in Donbass and quashing the endemic
       to grant Gazprom the right to set such   corruption of the government.   July
       tariffs because it has to have rules for non-  It also adds to growing concerns
       discriminative access to infrastructure.  over exactly what the relationship is   Belarus will buy 1.58mn tonnes of Russian
         Artemyev official said that it is also   between Ukrainian President Volodymyr   oil in July, BelTA reports, citing Aleksandr
       important that companies cut costs.  Zelenskiy and his former friend and   Tishchenko, Press Secretary of the Belarusian
         The tariffs will be calculated mostly   sponsor Kolomoisky. Zelenskiy was swept   state petrochemical concern Belneftekhim, on
       below inflation and only sometimes, if the   to a landslide victory in the presidential   23 June.
       tariffs are too low,  above inflation, he said.  elections last April, partly thanks to the   The spokesman said: “In line with this
                                           support of the 1+1 broadcaster and other   year’s indicative oil trade balance sheet,
                                           media assets that belong to Kolomoisky.   Belarusian oil refineries will acquire 1.58mn
       Transneft June oil exports          Moreover, Zelenskiy has appointed several   tonnes of oil from Russian oil companies
                                           of Kolomoisky’s associates to senior
                                                                                in July. Of that, 1.495mn tonnes will be
       fall 14% to 16.7mn t                positions and has refrained from taking a   delivered by pipeline and 85,000 tonnes will
                                                                                be delivered by rail.”
                                           clear public stance on distancing himself
       Exports of Russian oil pipeline monopoly   from the oligarch or his business interests.  “There are plans to satisfy the rest of
       Transneft fell by 14.2% on the year to 16.7mn   More recently, concerns over Zelenskiy’s   the demand with shipments by tanker
       tonnes in June, spokesman for the monopoly   relations with Russia were raised when it   ships. Work is in progress on volumes and
       Igor Dyomin told PRIME on June 30.  was revealed that Viktor Medvechuk, one of   suppliers,” the official added.
         “16.7mn tonnes of oil were pumped for   the leaders of the pro-Russian Opposition   BelTA reported earlier that the sides
       exports in June (19.4mn tonnes in June   bloc and a personal friend of Russian   have agreed a schedule for delivering
       2019),” Dyomin said.                President Vladimir Putin, owns a blocking   5.75mn tonnes of oil from Russia to Belarus
         Dyomin also said that Transneft will   share in the 1+1 network.       by pipeline in Q3 2020.
       export 15.2mn tonnes of oil in July.  Zelenskiy’s critics claim that he is a
         Exports to Belarus stood at 1mn tonnes,   Russian puppet and will sell out Ukraine’s
       falling 27% on the year in June. The July   interests in order to make peace with
       plan amounts to 1.4mn tonnes.       Russia, and will also abandon Ukraine’s   CENTRAL ASIA & SOUTH
         Exports to China rose by 18.1% to 3.4mn   European aspirations.
       tonnes in June, the plan for July is 3.5mn   The Defence Ministry has agreed to buy   CAUCASUS
       tonnes, the official said.          aviation fuel at a price of UAH16,256 ($609)
                                           per tonne by July 23. According to the
                                           price monitoring of the Consulting Group
                                           A-95, there are offers of aviation fuel at the   Kazakhtstan’s Kashagan
       EASTERN EUROPE                      wholesale market at UAH14,150 per tonne
                                           (with prepayment and without delivery),   reportedly jumps 40%
       Ukrtatnafta oil company             which are 13% cheaper than the price asked   following maintenance
                                           by Ukrtatnafta.
       wins Defence Ministry fuel          memorandum of understanding (MoU)    Oil output at Kazakhstan’s Kashagan field
                                             Enkorr reports that the price in the
       supply contract                     signed between the the Defence Ministry   has jumped by 40% since June 23 to 210,493
                                           and Ukrtatnafta is specified, including
                                                                                barrels per day (bpd) from 150,000-151,000
       Ukraine’s oil company Ukrtatnafta, which is   logistics costs, and takes into account the   bpd following planned maintenance, two
       controlled by oligarch Ihor Kolomoisky, has   deferred payment, which also affects the   industry sources told Reuters on June 24.
       won a tender to supply the Ministry of Defence   cost.                     The jump in production came despite
       with 3,500 tonnes of aviation fuel despite   The contract was signed following   Kazakhstan’s overall commitments to cut oil
       asking a price that was almost a third higher   a tender on May 12. At the auction,   production based on the OPEC+ oil output
       than the lowest offer and the highest price of   Ukrtatnafta then offered the highest price   cut agreement.
       all the offers in the tender process. According   among the six participants. Its offer was   Oil and gas condensate output in
       to the Ukrainian industry publication Enkorr,   29% more expensive (UAH3,656 per tonne)   Kazakhstan rose to 204,842 tonnes per day
       this deal was the first contract signed between   than OKKO, which offered the lowest price   as of June 23 from 197,800 tonnes per day
       the Ministry of Defence and the Privat group,   of UAH12,600 per tonne.  on June 22, according to state monitor the
       which belongs to Kolomoisky and holds   Over the two-week tender process, from   Information and Analytical Center of Oil
       Ukrnafta’s shares, in the last 5 years, when the   May 29 to June 11, the bids of all the other   and Gas (IACOG).
       online ProZorro system was launched in 2015.  five companies were rejected one by one by   The Kazakh Energy Ministry has
         ProZorro was hailed as a revolution at   the tender committee. The official reason   said maintenance at Kashagan field was
       its launch, as it was supposed to introduce   is “failure to eliminate shortcomings in the   scheduled between June 16 and 23.
       transparency into government procurement   tender documentation”. Ukrtatnafta’s offer,
       contracts – a major source of corruption –   as the most expensive, was considered last
       and so stymie graft.                and was accepted on June 16.
         The ministry’s decision to accept
       Ukranafta’s bid is a blow to Ukraine’s fight





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