international magazine
16-02-2017 18:45


PARTICIPANTS OF THE UKRAINIAN LPG MARKET CRY FOUL OVER THE STATE PRESSURE ON THE BUSINESS



And are calling to bring to justice those responsible for blocking the LPG imports.

This was stated during the round table "The destabilization of the LPG market: causes and consequences for the state and consumers."

The representatives of the LPG companies have denied allegations of law enforcement agencies about the alleged tax evasion and terrorism funding.

Gaztron Managing Director Vladislav Kolodyazhni focused on the Ministry of Economic Development orders concerning sanctions against importers "who had imported into the customs territory of Ukraine LPG from the Russian Federation and the Republic of Belarus."
He added that now the majority of blocked rail LPG tanks are the ones owned by the Ukrainian state company "Ukrspetstransgaz" which currently is not used for transportation of LPG from Russia, but is involved in domestic shipments of the cargoes delivered by marine supplies of LPG from Egypt, Sweden and Kazakhstan.



Autotrans group of companies General director Sergei Michalik said that the problems today are similar to the way importers were treated in 2011, when criminals structures of Sergei Kurchenko entered the market.

"Then we, too, wrote a letter to state agencies asking to pay attention to the attempts to block imports and to the shady “special auctions”, but there was no response." Sergey Mikhalik added that in 2016 Autotrans paid to the budget Hrivnia338mn (More than $14mn) in taxes.

Victor Batrachenko managing Director of Nadezhda group of companies stated that for over 20 years the company remained honest fuel market operator, and in 2016 the company paid to the state coffers Hrivnia 980mn (over $40mn) in taxes.



Representatives of the Ukrainian LPG Association - President Stanislav Batrachenko and CEO Oleg Shirokov - said that ULPGA wrote about 16 appeals to various state agencies with a request to clarify the situation, but received no response.

According to Stanislav Batrachneko in the case of monopolization of the market by one player LPG price may rise by Hrivnia5-7/ liter ($0.25).



Head of "Oil and Gas Association of Ukraine" Dmitry Kulik added that while initially it was the LPG segment to see shipments locked, but similar scenarios are likely for the markets of gasoline and diesel fuel as well.



In turn, according to Parliament member Sergey Leshchenko, attmpts to block LPG imports to Ukraine by the law enforcement agencies is an attempt to bring a new company-monopolist to the market, as well as try to drain business of money before the elections. He added that in Ukraine’s Security Agency this project is being supervised by the first deputy head Pavel Demchina.



"This man is directly subordinate to the MP Alexander Granovsky, who is subordinate to the president and is supervising all energy supplies", - he added.

We would like to remind that on 8 February Ukraine’s rail monopoly Ukrzaliznytsia on the recommendation of the Security Service has extended the blockade of 161 rail tanks with LPG in Ukraine, which had already been blocked for about 2 months.

In turn, the SBU has also initiated sanctions against the largest Ukrainian importers of petroleum products and their partners non-residents, which were imposed by the Ministry of Economic Development on 6 February, 2017.

We would like to remind, that traders whose cargoes had been blocked account for about 35% of LPG imports to Ukraine. According UPECO consulting company in 2016, LPG was every third liter of fuel sold on the Ukrainian gas stations.