BAKU

Azerbaijan’s state energy firm SOCAR has become an export operator of Russian Rosneft’s oil products in Ukraine, Enkorr reported.

SOCAR Trading, the company’s trading arm, will be in charge of sales and communication with Ukrainian counterparties.

Swiss-based trader Proton Energy Group had been supplying Rosneft diesel and liquefied petroleum gas to Ukraine, but stopped exports from April 1, Reuters reported, citing trading sources.

SOCAR Trading’s managers held negotiations with Proton Energy Group in Kyiv last week.

The new operator plans to start supplies to Ukraine in June. The company’s quota stands at more than 100,000 tonnes of diesel fuel and 12,000 tonnes of liquefied gas.

“SOCAR announced a range of prices for diesel fuel to be shipped from Gomel with a differential above $30 per tonne, the company said.

SOCAR has an office in Ukraine since 2008. In 2010 the company began operating on the Ukrainian fuel market.

Ukraine consumes more than 7 million tonnes of diesel a year, importing two-thirds of its needs, mainly from Russia and Belarus. After Proton stopped supplies, Ukraine sought to increase seaborne imports but volumes have been insufficient, Reuters reported.

Rosneft, which supplied about 1.75 million tonnes of diesel to Ukraine last year via pipelines and railways, does not plan to resume exports in May and traders say that Ukraine may face diesel shortages in May because of planned maintenance at the Belarus Mozyr refinery from May 15 to June 15.

Mozyr is expected to supply about 150,000 tonnes of diesel to Ukraine in May, down from the usual 240,000 tonnes a month.

According to Reuters, traders estimate diesel shortages in Ukraine in May in a range of 150,000 and 200,000 tonnes.

That might be a serious blow for Ukraine, a major grain producer, that is in the middle of its sowing season.

Ukraine has previously increased imports from sea ports and by rail to compensate for shortages.