REUTERS
However, certain norms are still to be introduced into the country's legislation to this end.
CEO of National Joint-Stock Company Naftogaz of Ukraine Andriy Kobolyev has said Ukraine may take advantage of the latest developments on the world oil market and earn from US$1 million to US$3 million a month on fuel storage.
"We have been working for some time to increase our capacities to store oil in Ukraine. First, main storage capabilities are those at refineries and terminals. For example, there's the Pivdenny oil reception terminal," the company's press service quoted Kobolyev as saying.
According to him, there is a serious drop in oil consumption over the crisis related to the global coronavirus pandemic so excessive volumes of oil need to be stored somewhere.
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Kobolyev also believes the oil transportation system can be partially used for storage. However, certain norms are still to be introduced into the country's legislation to this end. Suppliers of Russian Urals oil should be interested in storage services, and they need to be given the opportunity, Kobolyev suggests, to cover storage costs while being exempted from VAT.
"In order to provide storage services, we need to obtain permission from a customs licensed warehouse. Because most of this oil won't be stored in Ukraine in the future," he said.
Kobolyev believes if such a regime is allowed, Naftogaz will be able to attract additional customers and, according to preliminary estimates, revenues can range from US$1 million to US$3 million a month.
"I think it's worth fighting for this. And we hope for an understanding from both the minister and the government," he added.
As UNIAN reported earlier, oil prices have slumped over 70% this year as the coronavirus has slashed demand for everything from jet fuel to gasoline, while storage tanks around the globe are filling rapidly.