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Media outlook in 2005

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The materials published in «Media outlook» are reprinted from other independent sources in shorthand form. LLC «TNK-BP Commerce» not always shares the point of view of the author of the publications.

November 25, 2005, Friday
Alexander Ivanov was appointed as General Director of the Closed Joint Stock Company "LINIK"
Alexander Ivanov, who at present holds the position of the General Director of LLC LINOS was appointed as General Director of the Closed Joint Stock Company LINIK (Lisichansk, Lugansk Region). This information was released by the Press-Department of LLC ÒNÊ-BP Ukraine. Such decision was made by the shareholders of the Closed Joint Stock Company LINIK at the meeting on November, 17.
Source: UNIAN
November 24, 2005, Thursday
Gasoline prices at fuel stations reduced by UAH 0.10 for one month
And the President of LLC TNK-BP Ukraine Alexander Gorodetsky stated that the Lisichansk Oil Refinery today was working with minimum production speed. So, in November it is planned to process even less than in October — only 500 000 tons.
Source: Fakty i Kommentariyi
November 23, 2005, Wednesday
Druzhba will be not extended to Adria
Druzhba-Adria Pipeline Integration Project for export of the Russian oil bypassing the Turkish channels will be most probably not realized. One of the key participants to this project — Croatia has lost interest to it. Now even Russians do not wish to further develop this project. In an interview for Transneft’s corporate magazine “Pipeline transportation of Crude Oil” the Vice-President of the monopolistic company Igor Solyarskiy stated that Croatia somewhat cooled off to the project, having decided to develop tourism and having feared that increasing of oil transit volumes through deep-water port Omishal by 5 million tons a year could aggravate the ecological situation at the Adriatic Sea“.
Source: Economical News
November 23, 2005, Wednesday
Ivanov was appointed as General Director of "LINIK"
Alexander Ivanov was apponinted as the General Director of the Closed Joint Stock Company LINIK (Lisichansk, Lugansk Region), who has the position of the General Director of LLC LINOS. The Press-Department of LLC ÒNÊ-BP Ukraine 23 November informed that such decision was adopted by the shareholders of the Closed Joint Stock Company at the meeting on November 17. At the same time the Press Department specified that this decision will come into force as of January 1, 2006.
Source: Interfax-Ukraine
November 22, 2005, Tuesday
LUKOIL will launch production of gasoline complying with European Ecological Standard EURO-5
The Head of LUKOIL Vagit Alekperov made a statement that in 2009 his company would launch production of gasoline and diesel fuel, which would comply with European Ecological Standard EURO-5. The major Russian oil companies have no other choice but to invest funds into modernization of the oil refineries, aimed at production of the light oil products of high quality. Traditionally the most active measures are undertaken by “Sibneft” (at the Omsk Oil Refinery), LUKOIL (in Perm), “Slavneft” (in Yaroslavl) and TNK-BP (in Ryazan).
Source: Vremya Novostey
November 22, 2005, Tuesday
TNK-BP Ukraine asks to change the laws
LLC TNK-BP Ukraine addresses the country’s leaders with a request to introduce a number of changes to the bill “About introduction of changes to some laws of Ukraine (about stimulation of production of motor mixed gasoline)” during its preparation for the second reading. This bill will be submitted for consideration to the Verkhovna Rada next week. The company as well addresses the country’s leaders with a request to provide obligatory discussion with all participants of the market of oil processing of all drafts of those legal acts, which are related to the rights and interests of the market participants.
Source: Terminal
November 22, 2005, Tuesday
Miracles of minicria
The Head of Department of Oil Processing Support of LLC TNK-BP Ukraine Sergey Denisov says that appearance of new mini oil refineries will surely lead to reduction of quality of the oil products. It is extremely difficult for them to compete with big enterprises, since the price cost of the products of such enterprises is significantly higher due to small volumes and low processing depth. Such oil refineries will manufacture much black oil, which will raise the cost of the light oil products. Surely the mini oil refineries have a right to exist, however their construction seems somewhat irrelevant, since Ukraine has a big reserve of processing facilities which are not loaded at the moment.
Source: Terminal
November 22, 2005, Tuesday
Fuel market is "cooling down"
The President of LLC  TNK-BP Ukraine Alexander Gorodetsky confirms that loading of the Lisichansk Oil Refinery was today lower than usual. So, in November it is planned to process even less than in October –only about 500 000 tons (in the last time the plant processed over 600 000 ton every month). Such precarious situation was noticed by the Ministry of Economy. According to the Deputy Minister Vladimir Ignashchenko, the Government of Ukraine was considering possibility of increasing the rates of import duty for the light oil products. The TNK-BP Group shares the concern of the Government over the situation at the market and supports the intentions to increase the rates of import duties for the oil products.
Source: Ukrainian Investment Newspaper
November 22, 2005, Tuesday
One, two, three… not sold!
Abundance of the imported oil products at the internal market causes situation when the oil processing in Ukraine becomes unprofitable. In such conditions the interest of the oil refineries to the domestic crude oil has reduced significantly. Last week two auctions on sales of the Ukrainian oil (at the Ukrainian Interbank Currency Stock Exchange and at the Ukrainian Stock Exchange) virtually failed. According to LLC TNK-BP Ukraine, the Lisichansk Oil Refinery reduces the volumes of oil processing. So, in November it is planned to process even less than in October — only 500 000 tons.
Source: Energobusiness
November 22, 2005, Tuesday
Ambiguous transit
Commenting on the issues of operation the Odessa–Brody Oil Pipeline, the President of LLC TNK-BP Ukraine Alexander Gorodetsky underlined, that today views concerning this process were ambiguous. However, the facts testify in favor of the reverse mode. The oil pipeline is being used today, it is not idling. Secondly, the Odessa–Brody Oil Pipeline, unlike any other Ukrainian pipelines where volumes of oil transportation keep decreasing, every month increases this volume — during the whole year a clear tendency to increasing the loading of the pipeline is observed. In the current calendar year the volume of oil transportation through the Odessa–Brody should reach about 6 million tons. As far as transit of oil through the territory of Ukraine is concerned, there is a tendency to reduction.
Source: Energobusiness
November 22, 2005, Tuesday
Your terrestrial compass
Already six months intensive supplies of imported oil products have been one of the biggest concerns of the Ukrainian oil refineries, which were many times confirmed by the representatives of the plant. Half of these plants had to be closed still in summer, and the big oil refineries in Krementchuk managed to keep afloat, having registered reduction of profitability of production. In particular, according to the President of LLC TNK-BP Ukraine Alexander Gorodetsky, the Lisichansk Oil Refinery today was working with minimum production speed.
Source: Oil Market
November 22, 2005, Tuesday
Better later…
According to the oil processing companies the tax preferences for importers of the oil products is the main factor for reduction of oil processing in Ukraine. In this connection we should not expect more than 1.2 million tons from the branch: such volume corresponds to the minimum production output of the Lisichansk and the Krementchuk Oil Refineries. Namely, unequal competitive conditions are the main reason for reduction of oil processing at the Lisichansk Oil Refinery, — says the President of TNK-BP Ukraine Alexander Gorodetsky.
Source: Oil Market
November 21, 2005, Monday
Alexander Gorodetsky says that the Lisichansk Oil Refinery is working today with minimum speed

According to the President of LLC TNK-BP Ukraine Alexander Gorodetsky, the Lisichansk Oil Refinery today is working today with minimum production speed. So, in November it is planned to process even less than in October — only 500  000 tons. “The reason is absence of economic appeal owing to domination of imported products at the internal market, — underlined Alexander Gorodetsky. – And such situation is typical for all Ukrainian oil refineries. The prices of the domestic refineries cannot compete with low prices for imported oil products”.

Source: PARALLEL-MEDIA
November 21, 2005, Monday
Crisis of the oil processing
According to the President of LLC TNK-BP Ukraine Alexander Gorodetsky, the Lisichansk Oil Refinery today is working with minimum production speed. According to forecasts of the top-manager, in November the production output of the Lisichansk Oil Refinery could reduce from 540 000 tons to 500 000 tons. “The reason for absence of economic appeal is domination of imported oil products at the internal market. And such situation is typical for all Ukrainian oil refineries. The prices of the domestic refineries cannot compete with low prices of the imported oil products”, –underlined he. This week the Ukrainian authorities made an attempt to improve the poor situation in sphere of oil processing. The owner of 41% stake of the Oil Processing Complex “Galichina”, the People’s Deputy Igor Yeremeyev again introduced the bill #7645 to the agenda of the Verkhovna Rada. Igor Yeremeyev suggests in his bill to resume levying of taxes for import of oil products to Ukraine. However, the People’s Deputies had not time to study this bill.
Source: Kiyevskiye Vedomsti
November 18, 2005, Friday
Selling short
The retail prices for liquefied gas in Ukraine in October have grown by more than 40%, and in the period from September through October – by more than 70%. In some regions the price is approaching the cost of high-octane gasoline grades and made UAH 3,65 per liter.It seems that the owners of the oil refineries are not going to take advantage of favorable state of affairs to increase the prices for their products. So, the Closed Joint Stock Company “Ukrtatnafta”, “LUKOIL” and TNK-BP Ukraine stated that as of September they did not increase the prices for natural gas and that they were not going to do this in foreseeable future.
Source: Power of money
November 18, 2005, Friday
Delayed temporary and investigative hopelessness

Details on session of the Parliamentary Commission dedicated to corruption of high-rank officials. Discussion of abuses by the oil companies, which partially belong to Alexander Tretyakov, began from confusion of RuhrGroup with Ruhrgas which was committed by the People’s Deputies. Concerning this issue Alexander Tretyakov noted that indirectly he was a stockholder of RuhrGroup, however only from 2001 through 2003, before the company was sold to ÒNÊ. Boris Bespaly who was as well present at the meeting told that the management of LUKOIL and ÒNÊ replied to official inquiries that Alexander Tretyakov was not a stockholder of any affiliated companies of “LUKOIL” and TNK.

Source: Ukrainian Pravda
November 18, 2005, Friday
Yevheniy Chervonenko: I did not say good-bye to Viktor Yushchenko. However this situation reminds me of one ugly joke
Interview with the ex-Minister of Transport and Communications Yevheniy Chervonenko. In particular, speaking about Yuliya Timoshenko as Prime Minister, Yevheniy Chervonenko noted: “I have great respect for her as a powerful woman. But sometimes it seems to me that she uses the methods of “Joint Energetic Systems of Ukraine”. You cannot operate at the market using the socialistic methods! I was yelling at the top of my voice at the meetings dedicated to gasoline crisis: “Sit down and try to find a solution! TNK-BP does not fear you anymore!”.
Source: Ukrainian Pravda
November 18, 2005, Friday
Bosch and ÒNÊ-Sbyt made an agreement about cooperation
LLC Robert Bosch Ltd., representing in Ukraine the company Robert Bosch and LLC  «ÒNÊ-Sbyt» made an agreement about cooperation. The representatives of LLC  TNK-Sbyt informed that in compliance with the agreement all fuel stations operated by TNK-Sbyt would be selling car accessories manufactured by Bosch, in particular spark-plugs, glow lamps, windshield wiper blades and braking fluid.
Source: Interfax-Ukraine
November 17, 2005, Thursday
Yuriy Boiko: we are negotiating with People’s Party of Ukraine headed by Vladimir Litvin
Online video-conference with the leader of the Republican Party of Ukraine Yuriy Boiko. In particular, replying to the question whether the price of LINOS was not too low, Boiko said: “I know this situation pretty good, since I was the director of the plant at that time. The refinery was declared a bankrupt and had debts for a total of over $400 mln. It was idling and had no perspectives for a normal operation. At that time its sale was the only way out for its operation. The decision about sales of the plant was made by the Prime-Minister of Ukraine Viktor Yushchenko”.
Source: Phrase
November 17, 2005, Thursday
Gasoline needs interference
According to the Deputy Minister of Economy Vladimir Ignashchenko, having set too low level of the import duties, Ukraine “came somewhat too far with the openness of the internal market”. The domestic oil refineries with somewhat obsolete production technologies and correspondingly insufficient processing depth can hardly compete with more cheap and imported oil products of higher quality, says he. Alexander Gorodetsky, the President of TNK-BP Ukraine underlined, that the Group TNK-BP shares the concern of the Government over the situation at the market and sustains the intention to increase the rate of the import duty for the oil products. According to his information, the main flow of import of the oil products (about 80%) comes from Russia and Belarus, where the oil refineries get the Russian oil without paying the import duties (as of October 1 it makes $180 per ton of crude oil). Due to this their products have a significant price advantage over the products of the Ukrainian oil refineries.
Source: Delo
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