UPDATE: Russia breaks oil product pipeline coop deal with Ukraine

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MOSCOW, Oct 13 (PRIME) -- Russia has cancelled a 1995 agreement with Ukraine on cooperation in the use of mainline oil product pipelines, according to a document seen by PRIME on Thursday.

It envisaged the use of oil product pipelines Samara – western route and Grozny – Armavir – Trudovaya, which cross the Ukrainian territory, by affiliates of Russia’s Transnefteprodukt.

According to the statement, the Ukrainian segments of the pipelines were sold by Russian oil pipeline monopoly Transneft, parent company of Transnefteprodukt, to Switzerland’s International Trading Partners AG in February 2016, which is why Russia’s participation in the agreement with Ukraine has lost sense.

Aide to the president of Transneft Igor Dyomin said that ñancellation of the agreement will not affect Russian oil product exports. “This is a merely technical issue. It will not affect the current oil product supplies.”

Ukraine earlier tried to nationalize its part of the Samara-western route Transneft’s pipeline. In March, The Supreme Economic Court rejected a cassation appeal by Transneft against a decision of Rivne’s Court of Appeals to nationalize the pipeline segment.

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