A police officer outside Naftogaz headquarters in Kyiv on Nov. 14, 2018.

Photo by Volodymyr Petrov

JSC Ukrtatnafta has asked Ukrainian President Volodymyr Zelensky to prevent potential imports of fuel from Mozyr Oil Refinery by state-owned Naftogaz Ukrainy.

According to the Ukrtatnafta’s press release, the company’s letter was sent to the head of state, Secretary of the National Security and Defense Council (NSDC) Oleksiy Danilov, and also to Board Chairman of NJSC Naftogaz Ukrainy Andriy Kobolev.

The company refers to the information published by Ekonomichna Pravda on Jan. 13 about Naftogaz and Ukrtransnafta’s plans for the import of oil products of the Belarusian Oil Company (BelOil) from the Mozyr Oil Refinery by Naftogaz Oil Trading LLC created in October 2019, as well as decisions of the governing bodies of Naftogaz and Ukrtransnafta.

Ukrtatnafta said that Rosneft and Gazpromneft are among the shareholders of the refinery, and the refinery itself depends on Russian oil supplies.

“Rosneft and Gazpromneft are under sanctions in Ukraine according to the decision of the National Security and Defense Council dated May 2, 2018. Ukrtatnafta believes that the above trade operations, if they do not directly violate the law, are at least “toxic” because they were actually initiated by Ukrainian state-owned companies Naftogaz Ukrainy and JSC Ukrtransnafta with enterprises that have shareholders in sanctioned companies that contributed to the annexation of part of the territory of Ukraine,” the company said.

Ukrtatnafta also complained that Ukrtransnafta, which was interested in increasing the volume of oil supplies, did not ask a domestic producer for a price offer, but created Naftogaz Oil Trading LLC and agreed to conclude a contract with a foreign supplier. The company considers the creation of the limited liability company inappropriate.

“The development of private activities under the control of state-owned companies can lead to causing harm to the activities of state-owned companies. An increase in the import of petroleum products is a decrease in the production of petroleum products in Ukraine and a decrease in the volume of oil transportation by Ukrtransnafta,” the company said.

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