Dmytro Firtash’s Group DF plans to expand into the domestic diesel fuel market. According to rumors, the oligarch is preparing to redivide the market after the NSDC’s decision to take Prykarpatzapadtrans away from Viktor Medvedchuk and his Belarusian partner Nikolay Vorobey.
Firtash’s Ostchem Retail begins with a highly specialized wholesale—selling diesel fuel to agricultural enterprises. This segment of diesel fuel is estimated at 40 billion UAH, reports the agency Interfax Ukraine.
Managers anticipate demand as they will sell fuel in a one-stop shop, along with fertilizers, seeds, and crop protection products.
"We strive to provide farmers with a full range of agricultural services in a one-stop shop. The sale of diesel fuel is an important step in this direction," noted Evgeny Khurilenko, Head of the Department of Ostchem RETAiL.
According to him, within the co-branding program with Syngenta, farmers are given the opportunity to buy plant protection products and seeds.
"Now that diesel fuel has been added to this list, the client covers up to 70% of the needs of the entire agricultural cycle," Khurilenko said.
The oligarch is also lobbying for the inclusion of diesel fuel in the list of goods that fall under the state program of concessional loans to agricultural producers.
Reference. During farming activities, an agrarian uses up to 100 liters of diesel fuel per hectare, in terms of expenditure, fuel costs account for about 15-20% of the entire agricultural cycle costs of the agrarian.
Earlier it was reported that Ostchem entered into direct agreements with six Ukrainian banks on targeted lending to the agricultural industry for the purchase of nitrogen fertilizers. Among the banks that provide concessional loans to agricultural producers are the following: ProCredit Bank, PUMB, Alliance Bank, Agroprosperis Bank, MTB Bank, PrivatBank.
Ostchem Retail and the international company Syngenta provide an opportunity to purchase fertilizers, seeds, and plant protection products on credit in one solution.
Ostchem Retail is the retail business of the nitrogen holding Ostchem and is a part of Group DF. The service is provided to farmers throughout Ukraine with delivery to the farm. The company will sell fuel produced in Ukraine, Belarus, and Lithuania.