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MOSCOW, November 26. /TASS/. A Commercial Court of Appeals of Ukraine’s Rivne Region has ruled the nationalization of a 1.5 kilometer transit oil products pipeline, previously owned by Russian oil pipeline monopoly Transneft, was legitimate, the country’s General Prosecutor’s Office said in a statement Wednesday.
The pipeline runs across western Ukraine to Hungary.
In May, a first-instance court of the Rivne Region ruled that Russian oil pipeline monopoly Transneft is the owner of the pipeline, but the court of appeals canceled the ruling saying the nationalization was legitimate.
Transneft will challenge the decision in the Supreme Economic Court of Ukraine, Igor Dyomin, company’s official representative, said, adding that the decision will lead to lower transit as it excludes the legal basis for investments, and “the pipeline will become a pile of iron."