Will russian gas line TogliattiAzot be built by passing Ukraine?

Will russian gas line TogliattiAzot be built by passing Ukraine?

29.12.2016 News

In the near future Ukraine may lose some revenue from the transit of Russian gas. Foreign  provider JSC Togliatti, which is among the top ten international flagship for the production of ammonia, is considering the possibility of building an additional pipeline from their company to the terminal in Taman port, by passing the Ukrainian part of the pipeline Togliatti-Odessa.

Earlier, the Supreme Administrative Court of Ukraine satisfied the appeal for review of Togliattiazot about the discussions with the Ministry of Economic Development and Trade of Ukraine. The decree of Ministry of Economic Development of August 2015, in which was set a  raise of $ 1.6 / ton / 100 km for the transport of gas in the country, has been recognized by the court as invalid.

In addition, russian exporter has asked for assistance in resolving this dispute Prime Minister of Ukraine – Volodymyr Hroisman, NABU and Audit Service of Ukraine. According to JSC Togliatti, Ukrkhimtransammiak does not allow to reduce the rate, contrary to the decision of the court, and, in turn, insists on the need to pay fines canceled by the court, further complicating the current controversial situation that could trigger the final stop transit, and it prevents also the creation of possible agreements on transit volumes for the next year.

From December, 23 this year, the transit of ammonia JSC Togliatti was completely stopped on the territory of Ukraine. The reason for this was an appeal of Togliatti to Ukrkhimtransammiak, in which the representatives of the foreign companies asked to increase until the end of 2016 quotas for the amount of bleeding. Ukrhazproekt answer was negative.

Togliatti-Odessa (pipeline) was built in the late 1970s for the purpose of transportation of ammonia Togliattiazot for export.

 Also read: The Swiss company has become a co-owner of the Ukrainian business Rosneft

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