Ukraine considers oil product quotas for Russian Customs Union

Ukraine could implement quotas on oil products from countries in the Russian-led Customs Union: Belarus, Russia, Kazahstan, Interfax reported on Tuesday, citing an undisclosed source. Yesterday Ukraine’s Interagency Commission on International Trade met, where imported oil product duties were on the agenda, but decisions from that meeting have yet to be disclosed. Naftogaz CEO Yevhen Bakulin said in a TV interview on Monday he expected duties to come into force in the near future. Antonina Davydenko: Duties, unlike quotas, would affect all countries importing gasoline into Ukraine, were first recommended by the Energy Ministry at the beginning of 2011, but a decision was postponed due to turmoil on global oil markets. Recent statements by Bakulin and the Energy Minister Yuriy Boyko (see our news from August 25) carry negative implications for Galnaftogaz (UX: GLNG UK, U/R). If implemented, duties could significantly impair the fuel retailer’s margins; about 100% of Galnaftogaz’ supplies are imported, though not from customs union countries.