During the harvesting campaign 10% profitability can “hurt” Naftogas

On June 25, 2008, the Cabinet of Ministers of Ukraine obliged NAK “Naftogas” to supply cheap fuel to agrarians during the harvesting campaign, the profitability is not to exceed 10%. Thus, it’s for the first time the Government of Yulia Tymoshenko has admitted the inability to supply fuel to agrarians at preferential prices. The Ministry of Agrarian Policy says the Cabinet’s regulation will not manage the situation, because Naftogas cannot provide fuel to agrarian in full volume. And the experts’ forecast is that it can lead to the worsening of the financial standing of the company, as Kommesant Ukraine reports.

Yesterday, Prime Minister Yulia Tymoshenko stated the Government obliges the companies of NAK “Naftogas” provide fuel to the agrarian companies at preferential prices. According to her, diesel fuel and petrol, produced of Ukrainian oil, must be provided to agrarians with the profitability at 10% during June-November this year.

According to head of Energy Researches Centre Kostyantyn Borodin, the regulation of the Cabinet will not change the situation for the agrarians but can lead to the worsening of the financial standing of “Naftogas”, which intended to get additional profit from the production on the Shebelynskyi oil processing plant.