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Ihor Kolomoisky subdues Ukraine's fuel market

Author
Evgeny Chernovalov

Ukrainian businessman Ihor Kolomoisky has ramped up his activities in the country's oil market, including in the public sector. For the first time in three years, Ukrtatnafta, which is controlled by him, took part in the fuel tender of the Ukraine's Defense Ministry. Yesterday, the company submitted an application to ProZorro for the supply of almost 30,000 tonnes of aviation fuel to the military.

At the tender, the Ministry of Defense submitted applications to the maximum number of participants from 2016 — nine companies, the industry publication enkorr reports.

Context

  • The last time Ukrtatnafta and the so-called Privat group submitted bids in fuel tenders of the Defense Ministry was February 2016. The company then the company lost to Trade Commodity (or its affiliated companies), which later became the main supplier of fuel for the military.
  • A week earlier, Privat, through Oil-Trade 2019, took part in Ukrzaliznytsia tenders for the supply of diesel fuel. The group has not participated in them for the last few years.
  • Over the past few months, Privat as a whole has become active in the market, opening new trading bases and started importing and selling autogas. Since June of this year, Privat, through GFS in the Dnipropetrovsk region, has begun to compete with Trade Commodity.
  • Two weeks ago, the Cabinet of Ministers introduced special duties for the import of diesel fuel and autogas from Russia by pipeline transport. The largest importer in this area is the Wexler group, which, along with Trade Commodity, is the main supplier of diesel fuel for Ukrzaliznytsia. According to market participants, Privat plans to increase imports of petroleum products by sea, where the group controls the largest oil transshipment complexes in Odesa and Chornomorsk.

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Tags
Ministry of Defense of Ukraine