SOCAR Trading starts supplying Rosneft diesel fuel to Ukraine

SOCAR New Energy has carried out the first supply of diesel fuel produced by Rosneft to Ukraine, Report informs referring to enkorr.

"A resource in the volume of about 2,000 tons was imported to the company's address from the OKKO group," the source said, adding that the delivery will be cleared by customs by May 25.

SOCAR earlier became an export operator of Rosneft’s oil products to Ukraine. According to the available information, the Swiss office of SOCAR Trading will oversee sales and communication with Ukrainian counterparties. Meanwhile, the role of the Ukrainian office of the company in the distribution and sale of volumes is not excluded.

According to sources, the new operator's quota for May is more than 100,000 tons of diesel fuel and 12,000 tons of liquefied gas. However, market participants previously noted that the probable period for the start of supplies could only be the beginning of June.

It was also reported that SOCAR will be able to offer the first volume of LPG under TERM contracts from July 2021. The premium under the contract may be $25 per ton to the monthly average of the Argus daf Brest quotation. SOCAR New Energy offers spot consignments of Rosneft autogas in May and June with a premium of $40 per ton to the monthly average daf Brest.

Ibrahim Ahmedov, deputy head of Public Relations and Event Organization of SOCAR, told Report earlier that an agreement was signed with the Russian oil company Rosneft providing for the right to supply Rosneft's oil products to Ukraine, Poland, the Baltic countries and the rest of Eastern Europe.