international magazine
19-02-2021 17:30



By the decision of the National Security and Defense Council (NSDC) of Ukraine, which was put into effect by the Decree of the President of Ukraine dated 28 May, 2015 No. 298, Ukraine’s Cabinet of Ministers was instructed to take the necessary measures to preserve and operate a part of oil product pipelines with a total length of 1433km passing through the territory of Ukraine. This was reported by the NSDC on 19 February.

In particular, the Cabinet of Ministers must immediately determine the central executive body responsible for the preservation and operation of part of the oil product pipelines, and take measures to ensure the protection of the economic interests of the state.

However, for more than five years, the government did not ensure proper protection of the property interests of the state and brought in the courts of various instances the right of the state of Ukraine to own and use part of the oil product pipelines.

As a result, state property ended up in the hands of two owners with foreign registration, but affiliated with two citizens of Ukraine.

According to Article 7 of the Law of Ukraine "On Pipeline Transport", "the main pipeline transport has an important national economic and defense significance and is the state property of Ukraine."

Having considered this issue, the NSDC decided to take urgent measures to return the pipeline into the state property of the people of Ukraine.

Also, law enforcement agencies were tasked with clarifying the circumstances under which state property ended up in private hands.

By the decision of the NSDC, sanctions were applied against 19 legal entities and eight individuals, including five airplane employed to fly from Kiev to Moscow and back. At the briefing, the head of the NSDC Aleksey Danilov said that not only Ukrainian companies were under the sanctions: "Some of the companies are registered in Moldova, some in Portugal, you will see the list in the Presidential Decree."

The sanctions have also been applied to the companies that service those airplanes.
The day before, on 18 February, 2021, at the entrance to the Novograd-Volynskiy pipeline junction and tank farm (LPDS) roumors about the possibility of sanctions against the owners of the Ukrainian section of the pipelines to be imposed at the 19 February NSDC meeting and the threat of fuel shortages translated into the traffic jams of tank trucks.

According to the market sources, further shipments are most likely to be terminated and the Russian diesel would travel in the pipeline solely to the Gomel pipeline and rail junction in Belarus and tank farm, to be further shipped to Ukraine by trucks or by rail, which would hike the shipment costs.