Azerbaijan says ready to resume oil exports to Ukraine
By Aynur Jafarova
Azerbaijan is ready to resume deliveries of crude oil to Ukraine, Azerbaijani Industry and Energy Minister Natig Aliyev told journalists on Friday.
Aliyev, who was participating at a meeting with members of the Caspian-European Integration Business Club (CEIBC), said Ukraine's interest in oil deliveries from Azerbaijan was announced during a meeting with Ukrainian Minister of Energy and Coal Industry Eduard Stavitsky.
"In this case Ukraine should create appropriate preferential terms. This issue is being discussed. If Ukraine launches relevant initiatives, Azerbaijan is ready to resume deliveries of crude oil," Aliyev said.
According to him, Azerbaijan suspended oil exports to Ukraine in 2012 due to the establishment of the Customs Union and the deliveries of Russian oil to Belarus at lower prices.
Under these circumstances, Azerbaijani oil could not withstand competition, the minister added.
With regard to the supply of Azerbaijani gas to Ukraine, Aliyev said that Azerbaijan is considering Ukraine's proposals on swap deliveries.
According to Aliyev, this proposal is interesting, but some technical issues need to be resolved.
"This is due to payment for transport services with participation of several companies in the project. Taking this into account, it will be difficult to organize swap gas deliveries to Ukraine in 2014," Aliyev said.
Stavitsky was on a two-day visit to Baku in March 2013. He made a proposal on swap deliveries through Russia during the meeting with Minister Aliyev.
Earlier, speaking at a press conference held after the meeting with Aliyev, Stavitsky said that supply of Azerbaijani oil to Ukraine is being studied.
"We studied with our colleagues Azerbaijani oil delivery to Ukraine and its further refining at Ukrainian oil refineries," he said.
The minister went on to say that "a little step should be made" for resumption of oil supplies. He expressed confidence that resumption of Azerbaijani oil deliveries would be mutually beneficial.
The volume of the Azerbaijani oil delivered to Ukraine was 1.5
million tons in 2011, Stavitsky said.
The two countries signed intergovernmental documents on cooperation
in the field of oil transportation through the territory of Ukraine
in January 2011 in Davos.
Azerbaijani oil deliveries to Ukraine will be discussed at the forthcoming meeting of the joint working group in May.
Ukrainian Ambassador to Azerbaijan Alexander Mishchenko has said all Ukrainian oil processing plants have been reconstructed to secure successful use of Azerbaijani oil.
Mishchenko said one of the achievements in the development of economic relations between the two countries is the creation of an ad hoc working group on energy cooperation.
"Currently, the working group's representatives from both sides are discussing the profitability of energy cooperation. In particular, they are considering the matter of processing only Azerbaijani oil at existing refineries. In this regard, modernization of Ukrainian refineries is at the final stage to prepare for receipt of Azeri Light crude," he said.
According to the ambassador, the taskforce is also considering several options for the supply of liquefied or compressed gas and is exploring the issue of alternative energy.
Trade turnover between Ukraine and Azerbaijan amounted to $900 million in 2012.