Russia has unblocked the supply of automobile LPG to Ukraine

The Federal Service for Technical and Export Control of the Russian Federation (FSTEC) issued positive news regarding the contracts for providing LPG produced by Rosneft to Ukraine, according to OilNews.

“Rosneft received FSTEC's conclusions on this contract and the previously suspended supplies are being provided again," a source in Glusco Ukraine said.

The supplier of Rosneft’s LPG to Ukraine is the Proton Energy Group SA, the recipients of the resource in Ukraine are Glusco Ukraine, OKKO, WOG, Nadezhda, Parallel, BRSM Nafta, SOCAR, KLO, and the Agency for Investment Management.

It is noted that market participants do not have access to the positive conclusions of the FSTEC on other contracts for the supply of Russian LPG to Ukraine. Companies also note that Russian manufacturers have not been active in collecting the necessary documents to file an application to receive the conclusion of FSTEC.

"I talked with Lukoil - they are not in a hurry. They are not asking for any documents and are not collecting them themselves. They say they are waiting for (the situation) to become clear," one of the Kyiv traders said.

At the same time, Gazpromtrans, one of Russia's largest LPG carriers, sent a letter to its counterparts demanding that the FSTEC permit be included in the package of documents provided during customs declarations. "In the event of a delay at a border station in connection with the absence of the above permission, Gazpromtrans LLC will be forced to impose a fine," the letter said.

The Federal Service for Technical and Export Control of the Russian Federation suspended the movement of liquefied gas in throughout Ukraine on April 1st.

However, since February 10th, the FSTEC has temporarily allowed the shipment of liquefied gas to the Ukrainian market.

According to Artem Kuyun, Deputy Director of the consulting group A-95, the halt on supplies through the biggest supply channel, which provides gas to more than 50% of the Ukrainian market, caused a rise in prices in the wholesale segment and is likely to reach gasoline stations soon.

  Ukraine, Russia, autogas, Rosneft