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Russia and Ukraine terminate agreement on operation of oil product pipelines

The Russian Foreign Ministry has been instructed to notify the Ukrainian side of this decision

© EPA/NARONG SANGNAK, archive

MOSCOW, October 13. /TASS/. Russian Prime Minister Dmitry Medvedev has decreed to terminate an agreement between the Russian and Ukrainian governments on cooperation in the operation of the main oil product pipelines, says a report posted on the Cabinet’s website on Thursday.

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"In accordance with Article 37 of the federal law On the Russian Federation’s international treaties to accept the proposal of the Russian Foreign Ministry and the Russian Energy Ministry on terminating an Agreement between the government of the Russian Federation and the government of Ukraine on cooperation in the operation of the main oil product pipelines signed in Moscow on July 26, 1995. The Russian Foreign Ministry has been instructed to notify the Ukrainian side of this decision," the report said.

It noted that the agreement envisaged that the oil product pipelines Samara-Western direction and Grozny-Armavir-Trudovaya passing through Ukraine’s territory is operated by the subsidiaries of JSC Transnefteproduct (100% of the company’s ordinary shares are part of Transneft’s equity capital). It is specified that the agreement regulates certain aspects of the operation of the main oil pipelines.

"In February 2016, the sections running through Ukraine’s territory were sold by Transneft to Swiss company International Trading Partners AG. The deal was approved by Russia’s Federal Antimonopoly Service (FAS) on October 16, 2015, and by Ukraine’s Antimonopoly Committee on December 22, 2015. In view of this, the Russian side’s involvement in the Agreement is inexpedient," an explanatory note to the document said.

"In accordance with Article 37 of the federal law On the Russian Federation’s international treaties the decree terminates the agreement," the Cabinet said on its website.

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