Ukrainian Energy Exchange for the first time in Ukraine introduced trading in TERM contracts

On Thursday, November 24, 2016 on the electronic trading platform of Ukrainian Energy Exchange for the first time in Ukraine held trading in oil products of Ukrainian production in the mode of differentials or TERM contracts. PJSC "Ukrgasvydobuvannya" in the framework of TERM-contracts proposed for sale 108 thousand tons of fuel production of Shebelynka refinery, including 60 thousand tons of gasoline A-92 Euro 4 and 48 thousand tons of diesel fuel of Euro 5 standard.

During the trading session were sold 36 thousand tons of diesel fuel with premium in the range of 25-27.5$/t to the quotations of the international news Agency Platts North West Europe.

Fuel market expert Oleksandr Sirenko, commenting on the results of trading said: "Successful trading of Ukrgasvydobuvannya under long-term contracts is evidence that the market believed in quality and stability of the domestic manufacturer. This is the beginning of a new trend on the Ukrainian fuel market. Now Shebelynka refinery quality of products and effective sales tools to compete with foreign suppliers".

"Today’s trading TERM contracts of «Ukrgasvydobuvannya» have opened a new page in development of exchange trading in Ukraine. Until today not a single Ukrainian manufacturer was able to conduct transparent trading in TERM contracts using an anonymous electronic system. Today, one has an ability to use them, and I’m very pleased that this unique opportunity was provided by Ukrainian Energy Exchange. "Ukrgasvydobuvannya" has established itself not only as a leading manufacturer of high-quality national fuel, but as a leader in implementing trade innovation. This allowed us to run liquid spot market subsequently trading on export, which is attended by world traders and today – TERM contracts. A large number of buyers indicate a significant interest from market participants to such tools. We hope that this practice of transparent sale of products are to adopt all Ukrainian companies of the fuel and energy sector, because today we have witnessed the introduction of the best world practices in the sale of petroleum products in Ukraine " commented Oleksii Lastovets, Deputy Chairman of the Exchange Committee of CE "Ukrainian energy exchange".

Remind that PJSC "Ukrgasvydobuvannya" in 2016 has completed a number of projects on modernization of Shebelynka refinery, which will fully switch to production of light petroleum products exclusively of standards Euro 4 and Euro 5. Product quality, compliance with standards and requirements are confirmed with quality passports and certificates of conformity.