Topic Of The Week
THREE VARIATIONS OF THE SAME SONG
The latest and clearly not the last gas crisis with Russia has once again demonstrated our country’s shaky position in the energy sector. Despite the measures taken by state officials, the problems in the fuel sector are showing no signs of disappearing. Why then does the only branch of the Ukrainian economy that has a cabinet-approved development strategy continue to go downhill?
Anti-counterfeit Campaign
DRIVING AT MOTOR FUEL
Late last year the tax police from a district in Kyiv region began checking some gas traders – the Argos-Trade private enterprise and OJSC Bohuslavsk Raiagrotekhservis. The interesting point in this case was the fact that this is first time a driver has filed a suit to challenge the poor quality of liquefied gas sold as motor fuel. The tricky thing is that there are still no state standards for this type of fuel in Ukraine.
Scandals
SCANDAL OF THE WEEK: UKRNAFTA VS. HARAS & L
DWARFS AND GIANTS
As Terminal has learned, Ivano-Frankivsk region’s economic court will soon consider a claim filed by Haras & L Ltd. scientific and production enterprise against Ukraine’s largest oil producer, PJSC Ukrnafta. The claim, worth UAH 676,000, was lodged on December 27, 2011.
Forecast
TURNS OF QUASI ACTIVITY
If it were not for the fuss about the Middle East and North Africa, all activities on the international markets could be described using the language of military terminology as the trench warfare of the First World War period. But geopolitics could lose its attractiveness without a solid base specially developed for it. The market is not so emotional now when reacting to events in Iran, while Nigeria, Syria and Libya are all but forgotten.
GETTING FROZEN
According to economic forecasts given by the Psyche Center on the basis of its regressive analytical model, this week the prices of major brands of fuel will change slightly. The average retail price of A-92 and A-95 petrol to DSTU 4063:2001 standards and winter-type diesel fuel 0.2-62 to DSTU 3868-99 standards will be UAH 9.97; UAH 10.21 and UAH 9.64 per liter respectively. The price of propane-butane will go down to UAH 5.78 per liter.
Trade
SCARY STORIES
Last week Ukrainian journalists invented a new horror story about this country’s fuel market being hidden under snowdrifts and frozen by the frost. It concerned the sanctions taken by the European Union against Iran, which, however, still remain all sound and fury, signifying nothing. Habitually confusing the short- and medium-term outlook, many members of the press were quick to state that «even not going as far as the worst scenario, oil prices could soar by 50%, and this would be a terrible shock for Ukraine. What is more, petrol prices will rise to UAH 16-17 per liter and higher, and the economy, being halfway in recovery from financial crises, won’t be able to take it.» We’d like to reassure fuel market operators and domestic consumers that the likelihood of this scenario is extremely low, and at worst would come rather in July than in February.
Raw Materials
FUTURE-IN-THE-PAST
Gazprom International, Pallas structure and Naftogaz
When Gazprom International, a 100% subsidiary of Russia’s Gazprom, announced the creation of a joint venture with Naftogaz Ukrainy to develop the Pallas structure in the northeastern part of the Black Sea’s Kerch-Tamansky shelf, it forgot it had been done already. It was way back in 2007 when the companies signed a protocol of intent to jointly develop the Pallas structure, then initialed a confidentiality agreement, and then produced a draft action plan. It was determined then that the project would be implemented by Chornomornaftogaz on behalf of Ukraine, while the Russian side would be represented by Gazflot Ltd.
You can read full articles in journal «Terminal: Oil Review» №4 (590) 30 Jan 2012
