Government of Kazakhstan offered government of Ukraine to build jointly new oil refinery powering three million tons of oil per year. Kazakh Ambassador to Ukraine Amangeldy Zhumabayev told in an interview to “Delo” newspaper.

“We are interested in building oil refinery jointly with Ukraine. This is important now in the view of Ukraine’s accession into the WTO,” he said. The newspaper writes that the project of the new oil refinery will become the main issue for discussion during a visit of Kazakh President Nursultan Nazarbayev to Ukraine. The visit is scheduled for February 2.

Press office of the Ministry for Fuel and Energy confirmed that the Kazakh party offered joint investment project. “We welcome investments to Ukraine. But our state will not take part in the building of the refinery. Our position is that it must be non-governmental commercial project,” the Ministry’s official Mikhailo Gryshchenko noted.

According to experts, two years and eight billion dollars are needed to build new refinery. They consider the new oil refinery will be headed for European markets.

Ukraine has six oil refineries of total power at 51.11 mln tons per year. According to the Antimonopoly committee of Ukraine, Odesa refinery (Lukoil), Lysychansk refinery (THK-BP) and Kremenchug refinery (Tatneft) control 66% of Ukraine’s petrol market and 51% of diesel oil market.

Kherson and Odesa refineries are under reconstruction now. Market experts believe that after modernization of Lysychansk, Odesa and Kherson refineries Ukraine may face surplus of oil processing facility.


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