The Ministry of Energy will hold a meeting on changing the approach to oil sales by Ukrnafta

Acting Energy Minister Yurii Vitrenko expressed concern about the further sale of oil by PJSC Ukrnafta through auctions at a price significantly lower than the European market, the press service reports.

The last auction took place on February 16, 2021, and, according to the Ukrainian Energy Exchange, 179 thousand tons of oil were sold during it at UAH 11,176.80/ton, which in dollar terms is significantly lower than the current price of crude oil on the European market.

“At the same time, Naftogaz has leverage over Ukrnafta as its majority shareholder, these levers of influence should also have been used for Ukrnafta to look for options to avoid situations when Ukrnafta once again sells oil for an actually understated price," said the Head of the Ministry.

Today, the Ministry of Energy will hold a meeting to discuss options for a way out of this situation, in particular, due to changes in the legislation governing such auctions, and because of the influence on NJSC Naftogaz as the majority shareholder of Ukrnafta.

To recap, Kobolyev announced the start of negotiations with Ukrnafta's minority shareholders regarding the division of its assets.

Tags: Naftogaz, oil, Kobolyev, legislation, Ukrnafta, oil production, Vitrenko, price, auctions, UEEX

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