Photo from UNIAN
Ukraine will finally be able to take advantage of relatively cheap oil prices due to the increase in the volume of oil refining within the country, according to a news story aired by TSN TV news service at 19:30 on January 4, 2017.
It is reported that Ukraine signed in summer the agreement with Azerbaijan on direct supplies of black gold with its further processing in Ukraine.
The first batch of Azerbaijani oil was delivered to Ukraine as far back as December. However, due to the Ukrainian legislation, it is to be transported to the oil refinery plant by rail. Notably, pipelines must be filled with oil to keep them operational. There was Russia's Urals oil on the route from Odesa to Kremenchuk, but it could not be recycled or replaced by the Azerbaijan oil, according to the law, therefore it was necessary to find a way out.
Oil is now transported in tanks by train to another part of the pipeline near the city of Brody. It's expensive, but it will be pay off quickly because of the increase of oil transit revenues within Ukraine. It is also noted that Russia blocked oil supplies to the only major Ukrainian processor Kremenchuk refinery for many years. And before that, it even "helped" to close other plants.
Read alsoNaftogaz should get rid of oil production assets in Egypt - KobolevAt the same time, Ukrainian enterprises produced even less than they could, because of lack of the Ukrainian oil.
"Importers of petroleum products have seized the market and continue to dominate in it: imported petroleum products make up to 70%. When oil prices are high, mostly oil producers earn. But when oil prices fall, the economy of the processing industry improves," co-chairman of the Energy Strategies Fund Dmytro Marunych said.
It is also reported that the oil processing will fill the budget, being linked with taxes and jobs. Automobilists will benefit as well. "First, the increase in production of petroleum products will lead to their relative cheapening. Second, the cost of petrol will reduce," Deputy Chairman of the Board of PJSC Ukrtatnafta Viktor Babichenko said.
Also, there will be environmental effects because of fewer emissions. And, of course, patriotism: a lot of gasoline supplied to Ukraine is produced from Russian oil. Hence, the aggressor will earn less in Ukraine.