Lysychansk Refinery Repairs Extended Until End Of May

The repairs at the Lysychansk (LiNOS) refinery are allegedly to fix equipment damage suffered during an accident on April 22. The refinery stopped work even earlier, on April 11, to carry out regular maintenance. Initially, resumption of the refinery’s operations was planned for May 11.Concorde Capital:While the official reason for refinery stoppage is feasible, there is some concern that it is TNK-BP tactic to procrastinate the re-launching the Lysychansk refinery, due to its conflict with state regulators over oil product price caps. We do not believe that the stoppage will have significantly negative consequences for LiNOS, and expect the refinery will resume operations no later than mid-June. In the meantime, the company will be able to sell oil products from its inventory reserves.