Ukrtransnafta proposes to organize the legal basis for oil storage

Ukrtransnafta proposes to the Ministry of Finance of Ukraine to develop a legal basis for oil storage at the capacities of the Ukrainian oil transportation system in the “customs warehouse” mode, the press service reports.

It is noted that the granting of the “customs regime” status to pipeline transport facilities will allow customers to store oil in the oil transportation system of Ukraine for 1095 days without taxation and customs duties, and companies will receive additional income from the provision of storage services.

“We note that in order to attract as many customers as possible, it is advisable to spare them from customs payments, since the establishment of a minimum charge of 20% of the customs value of the goods significantly reduces the economic attractiveness of such a service,” the report said.

Given the situation on the oil market, Ukrtransnafta expects a decrease in transit through Ukraine, and, consequently, a decrease in revenue. Oil storage will partially compensate for lost revenue.

Recall, head of the support group of Ukraine on energy and the environment of the EC Torsten Vollert said that Ukraine had to intensify work on the draft law on the creation of minimum reserves of oil and petroleum products.

Tags: The Cabinet of Ministers, Naftogaz, oil, hydrocarbon production, tariffs, legislation, EU, The Minystry of Energy and Coal Mining, Ukrtransnafta, коронавирус, Oil refinery plant, foreign affairs, taxes, oil transit, negotiations, investments, Ukraine, price, agreement, route, volumes, oil products, gasoline, diesel, infrastructure, energy sector, quarantine, pandemia, oil pipeline, COVID-19, decline in production, oil companies, oil reserves

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