4 Apr 2018 10:19

Russian Railways offers volume discount for fuel oil exports til year's end, available to Rosneft

MOSCOW. April 4 (Interfax) - Russian Railways (RZD) is introducing a 4.3% discount on export shipments of fuel oil in tank cars from the stations of Dzemgi in Khabarovsk Territory, Novaya Yelovka in Krasnoyarsk Territory, and Sukhovskaya and Sukhovskaya-Yuzhnaya in Irkutsk Region.

RZD management made this decision at a meeting on March 26, the minutes from which were published by the company's corporate publication on Wednesday.

The discount is valid on the condition that oil product shipments in Russia and for export in 2018 from these stations total at least 19.54 million tonnes, including at least 6.72 million tonnes of fuel oil. Not including shipments from Dzemgi to Vanino, shipments are supposed to exceed 5.29 million tonnes.

The decision will go into effect "according to the established procedure," ten days after publication, and will be valid until the end of 2018. "Fulfilment of the guaranteed amount of shipments must be stipulated by contractual obligations with RZD," the company said.

The Komsomolsk Oil Refinery is located next to the Dzemgi station in Komsomolsk-on-Amur, the Achinsk Oil Refinery is located next to Novaya Yelovka station, and the Angarsk Refinery is located next to Sukhovskaya and Sukhovskaya-Yuzhnaya stations. All three refineries are owned by state oil major Rosneft .

RZD received the right to vary freight rates within the bounds a "price corridor" in 2013. The ceiling is now plus 8% above current rates (might be lowered to 0% in 2019), and the floor is 50% below current rates for freight in rate classes II (basic) and III (high-margin), without restriction on distance of transportation, and 14% below for class I (low-margin) freight within 3,000 km.