TNK-BP to suspend operations at Lysychansk Oil Refinery

TNK-BP plans to suspend work at the Lysychansk Oil Refinery until end-1Q11 because of losses generated by the plant, Kommersant Ukraine reported this morning. According to the article, TNK-BP’s refining segment generated a loss of USD 6 mln in 9M10. TNK-BP controls 30-32% of oil product sales in Ukraine. Undisclosed sources interviewed by Kommersant said the halt in production at Lysychansk could lead to a rise in domestic prices for oil products, putting additional pressure on the government to introduce import tariffs on related products.