8 May 2024 16:29

Ukrainian government allocates $4 million for maintenance of Togliatti-Odessa ammonia pipeline

MOSCOW. May 8 (Interfax) - Ukraine's Cabinet of Ministers decided at a meeting on May 7 to allocate UAH 168 million ($4.3 million at the current exchange rate) to the State Property Fund (SPF) for the maintenance of the Ukrainian part of the Togliatti-Odessa ammonia pipeline, Ukrainian media reported, citing a statement on the Ukrainian Ministry of Economy website.

"The allocated funds will allow the enterprise to maintain the ammonia pipeline in proper condition, which is important to ensure the safety of the population living nearby. In addition, part of the funds will go to the salaries of employees of the state-owned enterprise, which is not operating today in its main line of business due to objective circumstances. [...] The decision will also allow for the retention of the qualified professional personnel who work at the enterprise," Deputy Minister of Economy Igor Fomenko said.

It is expected that funds allocated from the state budget reserve fund will allow for the timely implementation of required routine maintenance work at the facility, which is key for preventing man-made emergencies, the statement said.

Transit through the ammonia pipeline has been suspended since February 24, 2022, and on June 5, 2023, a section in the Kharkov region was damaged. The Transammiak company, which manages the Russian part of the ammonia pipeline, stated that the pipeline on Russian territory is securely cut off from the Ukrainian part [the dividing line is in the Belgorod region on the state border with Ukraine] and is in safe and serviceable condition under the constant control of the company's services.

Togliattiazot , one of the world's largest producers of ammonia, previously exported up to 64% of its product through the Togliatti-Odessa ammonia pipeline.

The official rate as of May 8 is 39.3 UAH/$1.