Media outlook in 2006

"Ukrtransneft" and the Russian company "Transneft" and ТNК-BP signed an agreement about increase of the oil transit through Ukraine. ТNК-BP Ukraine Press-Secretary Irina Kovalchuk refused Podrobnosti to comment on the agreement, however she evaluated it as "a big compromise".

The reached agreements will increase the competitiveness of the route Brody-Odessa relative to other export routes and will bring positive economic effect for the Ukrainian budget Ukraine in 2007.

The Ministry of Transportation and Communication intends to increase the rates for railway transportation of a number of different commodities, including all kinds of oil products. Such increase will have disastrous consequences for profitable activities of the domestic oil refineries, especially for the Lisichansk oil processing plant.

The Russian party is obliged to provide supply of oil for transportation through the territory of Ukraine to Mozyr – Brody - Sea Oil Terminal (Sea Oil Loading Terminal) "Yuzhniy" in amount not less than 9 mln tons annually, as well as to provide oil transportation amount reached in 2002 to Odessa port through the route Velikotsk – Lisichansk - Krementchuk - Odessa and Michurinsk – Krementchuk - Odessa.

Recently the boarding school in Lugansk for deaf children received the necessary set of sound amplifying equipment of collective use "FM-system". This equipment was presented to the school by TNK-BP Ukraine.

The first company which announced about its readiness to launch production of the oil products complying with the European requirements was TNK-BP. According to the company’s announcement in 2007 the Lisichansk Oil Refinery will launch production of the aviation kerosene and gasoline using the international standards. Besides, next year the oil refinery will start production of fuel, complying with the ecology standard "Euro-4". TNK-BP intends to get closer to Euro-5 standards by the beginning of 2008.

A good example of a competent emotional positioning is the first advertising campaign of TNK-BP launched in 2006, the main aim of which was to support the promotion of the Program of Corporate Social Responsibility.

The ink has not yet dried under the Memorandum between the oil companies and the Government, and there are already some attempts of revision of the reached agreements. The magazine has got a letter from TNK-BP Ukraine to the Ukrainian Cabinet and the Ministry of Fuel and Energy which says that the preferences promised by the Government may not be fulfilled.

The low quality of the Ukrainian oil products reduces the profits and reputation of the oil companies, will hit the pockets of the car owners and influence the ecology. Inactivity of the responsible State committee Ukraine on Issues Technical Regulation and Consumer Policy induced the market participants to look for a way-out from the situation.

Quality standard "Euro-3" will enter into force in Ukraine in 2008 . The manufacturers themselves are already getting prepared for tougher requirements to quality of the products. Last week the Lisichansk Oil Refinery received a certificate of conformity for Ecology Management System ISO 14001.

The Ukrainian Cabinet reached an agreement with the biggest operators of the oil and oil products market that the gasoline prices will be calculated based on a complex formula. Every decade the oil products market will be analyzed for the last 30 days.

In spite of the promise to reduce the railway rates for transportation of the black oil, given the oil companies by the Government, "Ukrzaliznytsya" is getting ready to raise the rates as of January 1, 2007 for transportation of the light and black oil products.

The officials and the oil companies had worked out a new method of formation of fuel prices. The experts have different opinions about the efficiency of this formula.

The Ministry of Economy recommended the Ukrainian Cabinet to revise the gasoline prices defined in the Memorandum with the oil trading companies and to raise them. According to the Minister of Economy Vladimir Makukha for some kinds of gasoline the sales based on the prices defined by the Memorandum is unprofitable.

The Government and the representatives of the biggest oil companies decided to track the objectivity of the price processes in the retail segment of the oil market using a special formula.

About month the wholesale market was suffering from sharp shortage of high-octane gasoline. In the first decade of December the wholesale traders noted arrival of sufficient gasoline resources at the market. The major role in solution of the gasoline issue was played by Lisichansk Oil Refinery.

Last month LINIK manufactured only 25 500 tons of gasoline and 61 700 tons of diesel fuel. This can be explained by the fact that from October 1 until November 15 the oil refinery will undergo a scheduled repair.

LLC "TNK-BP Ukraine" keeps the boarding school with 135 pupils under its patronage.

The process of visiting the fuel stations of TNK network is regulated taking into account the existing legislation and internal procedures of the company. At the same time we have a task to suggest our customers more than he expects.

Bill Emmot, ex-Editor-in-Chief of The Economіst conducted a master-class for leading journalists, editors and owners of mass media in Ukraine. This master-class was initiated by TNK-BP Ukraine.