The increase in oil imports was the result of an improvement in the general political situation for the Privat group of companies, which owns a controlling stake in Kremenchuk refinery. With the change of power, they felt much better, their risks were minimized, and they are on horseback now. However, for Ukrainians this does not mean that gasoline produced by the plant will become cheaper.
This opinion was expressed by the analyst of Kosatka.Media Yurii Niemov.
“An increase in the import of raw materials leads to an increase in the production of Ukrainian gasoline, and to a lesser extent, diesel fuel and liquefied gas. But the increase in production is negligible. And this will in no way affect consumer prices. Fuel prices for automobiles in our country have long been set by the market on the basis of European oil product quotes”, Niemov explained.
The analyst also explained why it was American oil that was imported – everything is dictated by the economy: “American oil prices are formed on the domestic American market, which is closely connected with the international one. In recent years, they are significantly lower than the North Sea Brent mixture price. Perhaps there was an arbitration window for the implementation of such supplies. Ukrtatnafta buys Bakken oil under a contract with the British company BP (British Petroleum), it is delivered by tankers to Odesa oil transshipment complex, from where it is pumped through Ukrtransnafta Odesa-Kremenchuk pipeline to Kremenchuk oil refinery.
Recall, Ukrtatnafta increased oil imports for the period January-October 2019.