Media outlook in January 2010 | |||
Oil holds onto the past
On January 20, the first Ukrainian black gold auction conducted under the new regulations was wrecked. In the course of auction the price dropped to UAH 4,500 per ton ($65/barrel), nevertheless none of the registered bidders, among which there were no representatives of refineries competing with Privat, namely TNK-ÂÐ Commerce and Lukoil-Ukraine, consented to the purchase. Furthermore, the next auction due on January 26 will be conducted according to the old regulations allowing the companies affiliated with Privat to buy oil primarily for refinement at Kremenchug refinery much cheaper. The Chairman of UICE Petro Pereverznev reported that the District Administrative Court of Kyiv suspended the effect of the decree of the Cabinet of Ministers which introduced changes into the Regulations on Auction without specifying the plaintiff and the court which made this decision. However, according to the periodical, it was UkrNafta that filed the corresponding claim with the District Administrative Court. Both experts and market players believe that the court resolution suspending the effect of the new auction regulations was the only option for Privat to avoid buying Ukrainian oil at the price close to the market rates. The text of the new procedure left no loophole for it. In the meantime, the market players complain that the new auction rules proved to be ineffective: “It is unclear why they can't sell oil directly from deposits. This would ensure oil transportation to any refinery in Ukraine as required by the December resolution of the Cabinet”, experts at TNK-ÂÐ Commerce note.
Source: Ekonomichni Visti