Transneft Signs 10-year Oil Transit Deal with Ukraine

Ukrainian company Ukrtransnafta and Russian oil producer Transneft have agreed on a 10-year deal to provide oil transit services across Ukraine, Ukrtransnafta said, according to

“On December 3, 2019, Ukrtransnafta and Transneft entered into an additional agreement to the contract on providing oil transportation services through the territory of Ukraine, which prolongs it for 10 years — from January 1, 2020, to January 1, 2030,” the company said.

Nikolai Gavrilenko, Director General of Ukrtransnafta and Transneft’s vice president Sergei Andronov signed the document. At the meeting, the parties also discussed the prospects for further cooperation, Ukrtransnafta added.

“Apart from prolonging the contract, an additional agreement between Ukrtransnafta and Transneft will update a number of its provisions taking into account the current changes in the oil transportation services market in the region,” the company informed.

It was noted that the basic principles of cooperation between companies remain unchanged, including payment procedure for services and the mechanism of interaction at the level of technical services of the two oil transportation operators.

The report also emphasized that concluding the supplementary agreement “guarantees a safe and stable operation of the oil transportation system of Ukraine on a long-term basis” and provides for loading the system of trunk oil pipelines with volumes of oil in the direction of European countries.