Ukraine Railways to purchase 10,000 tons of diesel fuel from SOCAR

Ukrzaliznytsia, the Ukrainian Railways will buy 10,000 tons of diesel fuel from SOCAR Energy Ukraine, a subsidiary of Azerbaijan’s State Oil Company (SOCAR), Report informs via Ukrainian media.

The contract with the Azerbaijani company sets the price at 52,900 hryvnias ($1,285) per ton, which is lower than the anticipated 54,000 hryvnias ($1,312) as indicated in the Prozorro state procurement system.

This price is slightly higher than the 50,948 ($1,238) and 51,300 hryvnias ($1,247) per ton offered by the Ukrainian state company Ukrnafta in June.

However, this can be attributed to the increase in the Platts index, reflecting global fuel prices, and the depreciation of the hryvnia from 40.65 to 41.23 against the dollar during this period.

As a result, Ukrzaliznytsia will spend 529 million hryvnias ($12.8 million) to purchase 10,000 tons of diesel fuel from SOCAR Energy Ukraine.