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Ukraine could have diesel shortages in May

April 20/2021

MOSCOW (MRC) -- Ukraine could face diesel shortages in May because of planned maintenance at the Belarus Mozyr refinery coinciding with a break in supply from Russia's Rosneft, five trading sources told Reuters.

Swiss-based trader Proton Energy Group, which supplied Rosneft diesel and liquefied petroleum gas to Ukraine, stopped exports from April 1 and new supplier Coral Energy has yet to take over, sources have said. Ukraine consumes more than 7 million tons of diesel a year, importing two thirds of its needs, mainly from Russia and Belarus. After Proton stopped supplies, Ukraine sought to increase seaborne imports but volumes have been insufficient.

Rosneft, which supplied about 1.75 million tons of diesel to Ukraine last year via pipelines and railways, does not plan to resume exports next month and Belarus Mozyr refinery is set for planned maintenance from May 15 to June 15, traders said.

Mozyr is expected to supply about 150,000 tons of diesel to Ukraine in May, down from the usual 240,000 tons a month, traders said. "We expect a deficit of around 270,000 tons in May," one of the sources said.

Another source estimated that the diesel shortages could be between 150,000 and 200,000 tons next month, when major grain producer Ukraine would be in the middle of its sowing season. Ukraine has previously increased imports from sea ports and by rail to compensate for shortages, but it was not clear how it would act on this occasion, traders said.

Rosneft, Coral Energy, Mozyr refinery and the Ukranian Energy Ministry did not respond immediately to Reuters' requests for comment.

As per MRC, The Bashkir Soda Company (BSK) has been excluded from the list of a number of organizations against which Ukraine has imposed sanctions. Head of State Volodymyr Zelenskyy signed a decree on the enactment of the decision of the National Security and Defense Council of the country on sanctions, the document was published on the president's website. The sanctions against the BSK were imposed in May 2020 for a period of three years. Restrictions were imposed on trade operations, blocking of assets, complete cessation of the transit of resources, flights and transportation to the territory of Ukraine, suspension of the fulfillment of economic and financial obligations, as well as a ban on participation in the privatization and lease of state property.

According to MRC's DataScope report, last month's PE imports to Ukraine were 28,700 tonnes versus 17,700 tonnes in February, local companies increased their purchases of all PE grades. Thus, overall PE imports reached 63,600 tonnes in January-March 2021, compared to 39,900 tonnes a year earlier. HDPE imports decreased significantly, whereas imports of other PE grades increased.
Author:Anna Larionova
Tags:petroleum products, crude oil, neftegaz, petrochemistry, Rosneft, Ukraine.
Category:General News
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