Tariff for oil transit via Ukraine to grow by 18.3% from Jan 2023

KYIV. Dec 27 (Interfax-Ukraine) – The tariff for oil transit through Ukraine to Hungary and Slovakia will increase by 18.3% from January 1, 2023, from EUR 11.5 per tonne to EUR13.6 per tonne, a government source told Interfax-Ukraine.

The information is also confirmed by the Russian media with reference to data on the website of the Russian Transneft.

In November, Bloomberg, citing a letter from Ukrtransnafta to Transneft, reported that the Ukrainian side notified the Russian side of the need to increase the tariff by 18% due to the ongoing destruction of the Ukrainian energy infrastructure, which led to a significant shortage of electricity, an increase in its cost, a shortage fuel, spare parts.

In addition, expenses for organizing safe working conditions for personnel and protecting the facilities of the Ukrainian oil transport operator increased.

As reported, the tariff for oil transit through Ukraine for Transneft increased from January 1, 2022 from EUR 8.6 per tonne to EUR 9 per tonne, from April 1, 2022 to EUR 11.5 per tonne.

In 2021, Ukrtransnafta reduced the transit of oil through the territory of Ukraine by pipeline transport to European countries and Belarus by 3.2% (by 427,200 tonnes) compared to 2020, to 12.725 million tonnes. In particular, transit in the direction of Budkovce (Slovakia) amounted to 8.594 million tonnes (1.6% more compared to 2020), Fényeslitke (Hungary) – 3.412 million tonnes (10.6% less), Mozyr (Belarus) – 719,000 thousand tonnes (18.2% less).

From December 5, 2022, the EU and the UK imposed an embargo on the purchase of Russian oil, as well as the participation of their companies in the transportation of Russian oil by sea and the provision of related services. Hungary, the Czech Republic and Slovakia managed to achieve an exception to the embargo on Russian oil by the EU.

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