Azeri SOCAR to start diesel supplies to Ukraine, Hungary in June

by Reuters
Wednesday, 19 May 2021 12:16 GMT

BAKU/MOSCOW, May 19 (Reuters) - Azerbaijan's state energy company SOCAR plans to supply Ukraine and Hungary with diesel from June, sending between 100,000 and 200,000 tonnes of oil products sourced from Russia's Rosneft per month, three industrial sources told Reuters.

Rosneft has been seeking an agent to facilitate its fuel deliveries to Ukraine after Swiss trader Proton Energy, its former exclusive supplier of diesel and LPG to Ukraine, suspended shipments of Russian diesel to the country in April.

A SOCAR spokesman told Reuters this month that the Azeri state company has signed a deal with Rosneft to sell oil products in eastern Europe, Poland, the Baltic states, Ukraine, and other countries.

So far, deliveries are set to start to Hungary, Poland and Ukraine, one of the sources said, via a pipeline running via Belarus and railways. Small, test volumes are possible as soon as the end of this month, another source said.

The sources spoke on condition of anonymity because they are not authorised to speak to the press and Rosneft and SOCAR did not immediately reply to Reuters' request for comments.

The operations were halted after a ruling by Kyiv's Supreme Anti-Corruption Court led to the seizure of diesel, owned by the Swiss-based trader, that was in the pipeline from Russia. That created a risk of diesel shortages in Ukraine. (Reporting by Nailia Bagirova in Baku and Natalia Chumakova in Moscow Writing by Katya Golubkova; editing by Barbara Lewis)

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