FRIENDSHIP SUPPORT: Ukrtransnafta is for the mutually beneficial cooperation with Russia in developing oil-transport streams
Ukrtransnafta OJSC has presented repeatedly proposals on Ukraine and Russian Federation interaction in oil-transit streams development to his Russian colleagues.
Ukrtransnafta OJSC considers that:
Russia is and will remain as one of the important and traditional oil suppliers at European market, that is due to its source of raw materials, geographic closeness to European Union and developed pipeline infrastructure providing access to considerable part of European oil market;
Caspian oil is not competing with Urals at European market. As other oil brands, it uses European ORP. Taking into account the annual growth of the Caspian oil extraction and export, it will have stable demand at European market in future, as well. Decline in oil extraction on the North Sea is also leading to increase of Caspian oil consumption evenly;
The scope increase of Caspian oil delivery to European market takes place at the same time with increase of Russian raw materials export, that proves lack of direct competition between these markets. Caspian oil consumption in Europe increases at the expense of excluding from the market the similar brands of light sweet oil delivered from other regions
Taking into account these conditions, Ukrtransnafta OJSC verifies that:
Odessa-Brody oil-pipeline does not make competitions between Russian and Caspian oil and does not influence the consumption level in the Caspian oil region;
Odessa-Brody oil-pipeline can only be an additional route of the Caspian oil transportation which is delivered to European market already, and Russian light oil.
In this connection Ukrtransnafta OJSC has proposed the following directions of Ukraine and Russian Federation cooperation in oil-transportation:
Using the Samara-Cremenchuk-South export direction more attractive for Russian companies prom economic point of view instead of the more expensive route Samara-Unecha-Mozir-Brody-South route currently used.
Joint efforts on Bratislava (Slovakia)-Shvekhat (Austria) oil-pipeline construction project improvement for providing direct pipeline delivery of Russian oil to Shvekhat ORP, and correspondingly, volume increase of its transit through Ukraine territory.
Arranging Russian oil Siberia light delivery on the oil-pipeline Odessa-Brody
Establishing a new export pipeline route for Russian oil delivery to South Germany SRP at the same time with light oil delivery batching
Joint improvement of Friendship-Andriya project with the purpose to increase Russian oil export, that will provide growth of its transit volume over Ukraine territory.
Russian experts have positively approached Ukrtransnafta OJSC proposals in general.
In particular, the president of Moscow oil-and-gas manufacturers forum A. Yudin considers that Odessa-Broda oil-pipeline charging on direct route benefits Russian and Ukraine.
As A. Yudin asserts, "the opponents of Friendship oil-pipeline construction asserted in their time that Russian oil would not be competitive at European market. But after Friendship oil-pipeline construction it has found its sector at European market and kept it
The opponents of oil-pipeline construction of the Caspian pipeline consortium Tengiz-Novorossiysk also asserted that Kazakhstan oil would exclude Urals from European market, but after the pipelines starts operations it did not happen."