OREANDA-NEWS. February 18, 2011. Ukrtransnafta, the operator of oil pipelines of Ukraine, began filling the pipeline "Odessa-Brody" with Caspian light sort oil "Azer-Light" and its pumping to customers in Belarus.

Thus, Ukraine has begun the practical implementation of agreements reached with the Belarusian side at the intergovernmental level and business entities for oil transportation through the territory of our country to the Republic of Belarus with the use of the Odessa-Brody pipeline and one of the two strands Druzhba pipeline.

Marine oil terminal "Southern" has already received two light oil tankers with capacity of 85 thousand tons each. Now the technological Urals oil (Russia) pumping out in the amount of 620 thousand tons, which was in the pipeline has place.

For the moment Ukrtransnafta negotiates the transportation of oil, which is planned to be purchased in Azerbaijan, to the refineries of Czech Republic, Slovakia and Hungary, the company said. Import of 3 million tons of oil annually is being discussed now. This will give the possibility to earn 17-20 million dollars of income each year. Negotiations with Poland are ongoing. Given the cost of oil in the world today is high enough, the difference in price of Azerbaijani and Russian oil is not so significant. At the cost more than 80 USD a barrel for refinery economic it is profitable to purchase Azerbaijani oil. Ukraine is ready to ensure smooth transportation of raw materials.

In comments distributed by the Ukrtransnafta press service it is stressed that regular supply of Caspian oil via Odessa-Brody pipeline in the averse mode do not only increases the level of oil transportation system loading, but also strengthen Ukraine's energy security in the region and for Europe in general, confirming Ukraine's role as a reliable transit country.

COMMENTS
Valentyn Zemlyansky, energy experts:
Odessa-Brody pipeline operation in the averse mode is quite a serious signal to Russia and Europe. Signal that Ukraine moved from declarations to find alternative sources of energy supplies and advantageous geographical location of the country for the transit of hydrocarbon to action.

At a time when world oil prices are steadily rising, Europe could consider the Euro-Asian Oil Transport Corridor project (EOTC), which provides an alternative route to transport Caspian oil through Ukraine. Already this year Ukraine transit can add at least 3 million tons to European refineries to the existing contracts for the transit of 4 million tons of Azeri oil to Belarus.

In particular, Ukraine could soon at the intergovernmental level with the Republic of Poland refer to Caspian oil transport by pipeline "Pivdenna Druzhba" in the direction of Slovakia, the Czech Republic, Hungary and other consumers in Central and Eastern Europe in the first phase of EOTC.

This year additional volumes of Azeri oil to Ukrainian refineries must be received. Last year, during the talks in Baku plans for possible doubling of light Caspian oil supply to Kremenchug refinery were made public.

Pavlo Ovcharenko, Ukrtatnafta chairman:
- For Azerbaijan it is much more profitable to supply raw material to the port of Pivdenny for export to European market. In winter the Bosporus often storms. For example now there are long lines of ships and oil delivery to Europe is rather problematic. It affects the economy of exports, because the supplier has to pay a penalty - that means the Azerbaijani side. However, to supply raw material to Pivdenny is much easier - tanker goes only one day, and there are no delays. So for Azeri oil extractor that is the priority direction. Thus, Ukraine in the chain extractor - consumer can significantly increase its role as a transit country and provide an alternative to Russian raw materials for domestic refineries.