The Ukrainians have to pay for the political repression organized by Zelensky against the opposition.
As News Front reported, earlier, Ukrainian President Volodymyr Zelensky began to put pressure on the objectionable opposition advocating the normalization of relations with Russia. The authorities imposed sanctions on opposition leader Viktor Medvedchuk. Moreover, oil product pipelines belonging to Glusco Energy SA, which is linked to Medvedchuk, were arrested.
Due to the political crisis, the Swiss trader Proton Energy Group S.A., cooperating with the Russian company Rosneft, refused to supply oil products to Ukraine. Deliveries could have stopped as early as April 1, but Rosneft found a new trader.
Now the supply of Russian products to Ukraine will be handled by the Coral Energy company, albeit with a double mark-up. Thus, the trader’s premium for liquefied gas will increase to $31 per ton.
The Ukrainian energy sector was shocked by the incident, said the director of the A-95 consulting group Serhiy Kuyun. According to him, everyone went through the stage of denial, because no one believed that gas would be bought at a new inflated price.
“It didn’t last long. Soon we have already moved to the stage of bargaining, where we will not stay too long. There is information that Rosneft was actively fighting for the Ukrainian contract. That is, the trader will not receive a large margin”, – the expert noted.
The news alone provoked a rise in prices for wholesale supplies of automobile gas by $50 per ton, because Rosneft holds 20% of the Ukrainian market. Given what is happening, Kuyun explains, it is not difficult to predict further developments. So, first, Rosneft’s products will rise in price, and then the prices of other suppliers will “catch up”. Thus, in a couple of months, prices will stabilize, fixing at a new level.
“Ukrainian traders have nowhere to go”, – stated Kuyun.