Ukraine's pipeline challenge

From 2009, Ukrtransnafta was a part of a vertically integrated oil informal structure – the Privat group, creating an obvious advantage for the group's business on the oil products market.

The first results of the company after the change of its management suggests that similar steps on detycoonization of the industry must be made in the country's largest company - Ukrnafta, which is controled by Privat for 12 years, although 50% + 1 share are owned by the state. However, the this need is not quite obvious for policy-makers.

"Are you going to drink coffee?"

Expulsion of the Privat’s puppet Alexander Lazorko from Ukrtransnafta got noisy. To defend his ward Igor Kolomoisky personally with gunmen came to the state company’s office, then President of the Ukraine Pyotr Poroshenko fired him from his post as governor of the Dnepropetrovsk region. The oligarch himself in his broadcast TV channel "1 + 1" stated that Ukrtransnafta was the circulatory system of its petroleum business.

Kolomoisky was sincere as never before in this. The oil ppeline system provides a low-cost and reliable supply of crude oil from Ukrainian fields, also controlled by Privat through Ukrnafta, to Ukrtatnafta’s refinery in Kremenchug.