28 Jun 2010 14:59

Russia hands draft oil transit agreement to Ukraine

NOVO-OGARYOVO. June 28 (Interfax) - Russia has referred a draft intergovernmental agreement on oil transit to Ukraine, Deputy Prime Minister Igor Sechin told reporters.

"There was a discussion of oil transit through Port Yuzhny. The Russian side raised the issue of lowering the tariff by the Ukrainian side. Here are our figures: the price of oil shipments through Novorossiisk is $47.09 per tonne and through Port Yuzhny $53 per tonne," he said.

"If no economic levers are put in place it would be difficult to draw Russian or other exporters. The draft oil transit agreement has been handed to the Ukrainian side. We hope it will be supported following a discussion. This is what we talked about with Yuriy Boiko," Sechin said.

The proposals voiced by the Russian side are realistic, he also said. The price of oil shipments through Odesa is $5 higher, he said, adding that the Ukrainian side should think of the economic aspect and take it into account. The oil pumping tariff is "uncompetitive" and the "pipe remains dry," he said.

On the prospect of sending oil along this route, Sechin said, "It could be between 9 million and 17 million tonnes for now."