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Ukrainian Railways: WOG tries to challenge diesel supply of SOCAR Ukraine

3 August 2016 18:15 (UTC+04:00)
Ukrainian Railways: WOG tries to challenge diesel supply of SOCAR Ukraine

By Nigar Abbasova

WOG Aero Jet company has made certain attempts to block the supply of fuel to Ukrzaliznytsia (Ukrainian Railways) by the Trading House SOCAR Ukraine (Ukrainian subsidiary of the Azerbaijan’s SOCAR), Ukrainian Railways said in a message posted on its website.

The message reads that such actions are considered to be a manifestation of unhealthy competitiveness.

"Attempts of the WOG Aero Jet to challenge a contract on the delivery of diesel fuel for railway traffic signed between SOCAR Trading House and Ukrainian Railways is referred to as the manifestation of improper manipulations and unhealthy competitiveness," the Ukrainian Railways said.

“Ukrainian Railways have managed to get three contractors due to its transparent approach in the purchase of goods. The fact reduces the dependence of railways on suppliers and allows implementing operations in a stable mode. Nevertheless, one of the oil traders is taking bids to oust another competitor,” the Ukrainian Railways emphasized in its statement.

Ukrainian Railways and Trading House SOCAR Ukraine signed a contract for supplying diesel fuel on August 1, 2016.

Following the signing, WOG appealed to Antimonopoly Committee of Ukraine, which accepted the appeal for the consideration. The message said that the acceptance of an appeal is not in line with law.

“Ukrainian Railways believe that the contract on the supply of diesel fuel is based on legal ground as the authority has not taken any decision on the halt of the procedure of purchase since the closure of a deal,” the statement reads.

WOG also appealed to the National Anti-Corruption Bureau, regardless the fact that the competitive bid of the company was higher than the bid of the winner of the tender Trading House SOCAR Ukraine).

Ukrainian Railways also called upon the state authorities to treat appeals objectively and take into consideration the state policy on the transparent and effective use of financial means for the purchase of goods and services.

“Ukrainian Railways is interested in the preservation of fair competition in the process of purchase of diesel fuel and in the possibility of getting supplies from several partners.”

SOCAR is to deliver 14,087 tonnes of fuel under the contract. The first lot of the supply with the volume of 730 tons was shipped, following the conclusion of the contract.

In Ukraine, SOCAR is represented by SOCAR Energy Ukraine, running a network of 58 refueling stations.

The main activity of SOCAR Energy Ukraine is to improve the network of petrol filling stations and organize wholesale of petrol and oil products in the territory of Ukraine.

SOCAR exported 389,220 tons of diesel fuel in the first half of 2016 as compared to the volume of 491,850 tons in the same period of 2015. The company has so far invested over $200 million in the development of business in Ukraine.

SOCAR opened its representation in Ukraine in 2008.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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