Ukraine suspends procurement of bitumen from Naftan due to U.S. sanctions
<p> MINSK, May 7 - PrimePress. Major Ukrainian companies have suspended purchases of bitumen from Belarus’ Naftan oil refinery (Novopolotsk, Vitebsk Oblast) because of the risks associated with the U.S. sanctions imposed on the Belarusian company and its counterparties, a source in the oil community told PrimePress agency. </p> <p> </p> <p> He noted that so far major Ukrainian companies have suspended imports of bitumen from Naftan until 3 June to analyze the mechanism of U.S. sanctions. </p> <p> </p> <p> According to media reports, Ukrainian importers have previously offered Naftan to advance bitumen purchases, but Ukrainian banks are unwilling to carry out transactions in the accounts of the Belarusian refinery for fear of falling under sanctions restrictions. A search is underway for a bank that is not afraid to transfer money. But so far it's fruitless, no one wants to take risks, market participants say. </p> <p> </p> <p> Belarusian bitumen accounted for 53.81% of Ukraine’s bitumen imports in March 2021. All in all, Ukraine imported 13,400 tonnes of Belarusian bitumen in March. </p> <p> </p> <p> As previously reported, the U.S. Department of the Treasury will resume on 3 June 2021 the effect of economic sanctions on nine Belarusian companies - Belneftekhim Concern and its U.S. representative office, as well as Belneftekhim-controlled Belshina, Grodno Azot, Grodno Khimvolokno, Lakokraska, Naftan, Polotsk-Steklovolokno, and Belarusian Oil Trading House. </p> <p> </p> <p> Whereas previously the U.S. sanctions threatened the Belarusian companies with the loss of the U.S. market only, the new regulations on the application of sanctions allow adding any company from any country in the world to the sanctions list, if it has commercial relations with companies from the original list. Thus, counterparties of the sanctioned nine Belarusian companies are advised to complete any transactions with them by June 3, 2021. </p> <p> </p> <p> It was reported that Belarus increased road bitumen export to Ukraine in 2020 by 77% on the year to 582,600 tonnes. In 2020, Ukraine imported 860,200 tonnes of road bitumen from all countries, twice as much as in 2019. </p> <p> </p> <p> Road bitumen is supplied to Ukraine by Belarusian oil refineries - Naftan (Novopolotsk, Vitebsk Oblast) and Mozyr Oil Refinery (Gomel Oblast), as well as the Belarusian production unitary enterprise Neftebitumny Zavod (Minsk Oblast). </p> <p> </p> <p> Petroleum bitumen is produced from a component of commercial fuel oil - tar and is used as the main component for the production of asphalt concrete. </p> <p> </p> <p> As previously reported, in 2020 Ukraine approved a record amount of UAH 110 billion (USD 3.976 billion at the exchange rate of the National Bank of Ukraine) for the national road maintenance fund. In this regard, according to A-95 experts, bitumen consumption in Ukraine in 2021 may increase to 1.5m tonnes. End </p>
2021-05-08
Primepress
Ukraine suspends procurement of bitumen from Naftan due to U.S. sanctions
MINSK, May 7 - PrimePress. Major Ukrainian companies have suspended purchases of bitumen from Belarus’ Naftan oil refinery (Novopolotsk, Vitebsk Oblast) because of the risks associated with the U.S. sanctions imposed on the Belarusian company and its counterparties, a source in the oil community told PrimePress agency.
He noted that so far major Ukrainian companies have suspended imports of bitumen from Naftan until 3 June to analyze the mechanism of U.S. sanctions.
According to media reports, Ukrainian importers have previously offered Naftan to advance bitumen purchases, but Ukrainian banks are unwilling to carry out transactions in the accounts of the Belarusian refinery for fear of falling under sanctions restrictions. A search is underway for a bank that is not afraid to transfer money. But so far it's fruitless, no one wants to take risks, market participants say.
Belarusian bitumen accounted for 53.81% of Ukraine’s bitumen imports in March 2021. All in all, Ukraine imported 13,400 tonnes of Belarusian bitumen in March.
As previously reported, the U.S. Department of the Treasury will resume on 3 June 2021 the effect of economic sanctions on nine Belarusian companies - Belneftekhim Concern and its U.S. representative office, as well as Belneftekhim-controlled Belshina, Grodno Azot, Grodno Khimvolokno, Lakokraska, Naftan, Polotsk-Steklovolokno, and Belarusian Oil Trading House.
Whereas previously the U.S. sanctions threatened the Belarusian companies with the loss of the U.S. market only, the new regulations on the application of sanctions allow adding any company from any country in the world to the sanctions list, if it has commercial relations with companies from the original list. Thus, counterparties of the sanctioned nine Belarusian companies are advised to complete any transactions with them by June 3, 2021.
It was reported that Belarus increased road bitumen export to Ukraine in 2020 by 77% on the year to 582,600 tonnes. In 2020, Ukraine imported 860,200 tonnes of road bitumen from all countries, twice as much as in 2019.
Road bitumen is supplied to Ukraine by Belarusian oil refineries - Naftan (Novopolotsk, Vitebsk Oblast) and Mozyr Oil Refinery (Gomel Oblast), as well as the Belarusian production unitary enterprise Neftebitumny Zavod (Minsk Oblast).
Petroleum bitumen is produced from a component of commercial fuel oil - tar and is used as the main component for the production of asphalt concrete.
As previously reported, in 2020 Ukraine approved a record amount of UAH 110 billion (USD 3.976 billion at the exchange rate of the National Bank of Ukraine) for the national road maintenance fund. In this regard, according to A-95 experts, bitumen consumption in Ukraine in 2021 may increase to 1.5m tonnes. End