Ukrainian oil processing sector suffers from Belarusian dumping

Ukraine should take measures to protect its market and attract investments to the country’s oil processing sector, TNK-BP executive director German Khan thinks.

“As of now, the Ukrainian leadership tends to understand the need of supporting the Ukrainian oil refining, which is currently in the process of stagnation and slow death,” he said.

According to Khan, only two refineries, Lisichansk and Kremenchug, are actually working in Ukraine today. “Both refineries do not operate at full capacity due to Belarus's dumping of raw materials supplies,” Khan explained.

He said he had recently met with Ukrainian Prime Minister Mykola Azarov and deputy PM Andriy Klyuev, RIA Novosti reports.

“The Ukrainian government should protect its market and attract investments to oil refining sector,” he said.

Khan added that TNK-BP the company had plans to invest in its oil refinery in Ukraine, but those plans could not be implemented under the current circumstances. He reminded that TNK-BP might decide to stop Lisichansk refinery after March 15.

“We will have no other choice if measures are not taken. We cannot generate losses,” he concluded.