The Ukrainian Railways joint-stock company (Ukrzaliznytsia) currently has sufficient supplies of diesel fuel for seven days of uninterrupted operation, but the diesel fuel that will be delivered to the company after the relevant negotiations will be sufficient for two months of operation.
The company announced this in a statement, the CFTS portal reports.
The company has already signed contracts for supply of 30,000 tons of diesel fuel, out of which 7,000 tons has already been delivered. The company is also preparing to sign contracts with two other suppliers for supply of 30,000 tons of diesel fuel. The company will thus have sufficient diesel fuel for the next two months.
In addition, eight more procedures for supply of an average of 100,000 tons of diesel fuel are currently being blocked because the Antimonopoly Committee of Ukraine is considering complaints filed by suppliers. The relevant contracts can be signed in late August if these procedures are unblocked quickly.
The company is also preparing to invite tenders for supply of an additional 50,000 tons of diesel fuel in the coming days.
“In order to ensure uninterrupted supply of diesel fuel in 2020, Ukrzaliznytsia will begin the process of concluding a framework agreement with reliable traders in the fall. The suppliers of petroleum products that offer the most favorable prices at auctions will be selected based,” Ukrzaliznytsia’s Board Chairman Yevhen Kravtsov said.
As reported previously, Ukrzaliznytsia is the first state-owned company in Ukraine to begin supplying diesel fuel based on formulaic price changes, taking account of the Platts quotation.
As the CFTS reported earlier, Ukrzaliznytsia has signed contracts for diesel fuel through negotiations. The state-owned company will purchase diesel fuel at prices ranging from UAH 24,910 to UAH 25,163 per ton.