Ukrainian pipeline operator has expanded its oil transit contract with its Russian counterpart Transneft by 10 years, from January 2020 to January 2030. The basic principles of cooperation between Ukrtransnafta and Transneft remain unchanged, especially in regard to payments for services. No further details have been provided.
The Ukrainian oil pipeline network is composed of three main pipelines: Prydniprovski (southeast), Druzhba (northwest) and Pivdenni (southern region). In April 2019, the Russian Federation decided to ban exports of crude oil, petroleum products, and coal to Ukraine. Since 1 June 2019, Ukrainian importers must apply to the Russian Ministry of Energy for permission to import.
Ukrtransnafta (100% public) manages Ukraine’s oil pipe system, which is the second-longest network in Europe (around 4,800 km) and plays an important role in the transit of oil. It also imports crude oil from Russia and Kazakhstan and sells petroleum products on the domestic market.