Russia resumes bitumen supply to Ukraine. Bad news for the administrations of the President of Belarus?

14 October, 2020 г.
The Russian government allowed the export of a number of other oil products to Ukraine under special permits. This is stated in the resolution of the Russian Cabinet of Ministers.
 
 
In particular, the document expands the annex with the list of goods, which are exported to Ukraine on the basis of permits issued by the Ministry of Economic Development.
 
Now it includes lubricants and bitumen.
 
Since 2014, Moscow has been tightening the rules of oil products export to Ukraine.
 
Russia accounts for the bulk of imports of base oils to Ukraine (not produced in Ukraine). In 2018, Russian bitumen accounted for almost 20%, or 122 thousand tons of the Ukrainian market.
 
The balance of the Ukrainian road bitumen market in January - September 2020 amounted to 762.6 thousand tons, which is one and a half times more than during the same period last year (480.7 thousand tons), enkorr reports with reference to "Consulting Group" A-95 ".
 
The market continues to grow due to both imported product supplies and increased production at Kremenchug refinery. For 9 months from Belarus 389 thousand tons of bitumen were delivered to Ukraine (+64.3% compared to January - September 2019).
 
One of the largest suppliers of bitumen is the company "BZT-Ukraine" - a division of the trade state enterprise "Belzarubezhtorg", which is part of the Office of the President of Belarus. "BZT-Ukraine" is among the largest taxpayers in the neighboring country.
 
The growth of bitumen supply is explained by the fact that a record volume of funding for road construction was approved in Ukraine for 2020 - 110 billion UAH (almost 3.9 billion dollars). Next year, this figure may be increased to 150 billion UAH.
 
- The increase in funding for road construction makes it possible to say that there is enough room for everyone on the Ukrainian bitumen market. Better logistics and quality play in favor of Belarus," said a source in Belarusian oil circles.
 
A few years ago, at the invitation of the fifth president of Ukraine Petro Poroshenko, Belarusian road construction companies, united in the concern Belavtodor-Ukraine, entered Ukraine. "BelzarubezhTorg owns 20% in the joint venture.
 

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