“Rosneft” has asked the Cabinet of Ministers to reduce tariffs for transportation of oil and oil products in the domestic market, reports Vedomosti, citing two Federal officials. According to them, a letter with this request, the company sent to the government last month, and in September the ministries and departments were instructed to study the issue.
One of the interviewees said that “Rosneft” radical proposals to reduce tariffs “Transneft” on oil transportation and oil products on the domestic market to 50%, and tariffs of Russian Railways by 30% and do it at a time. Other confirmed figures, but said that the tariffs of “Transneft” is proposed to be reduced only to the transportation of oil to refineries.
Both the interlocutor of the newspaper stressed that such a sharp decline is absurd and no one seriously discusses it will not. One of them at the same time noted that the idea to reduce tariffs under consideration, without reference to the proposed figures.
Representatives “Rosneft” and “Transneft” have refused comments. Representatives of the Ministry of Finance and the Federal Antimonopoly service did not respond to questions. The Russian Railways representative said that he did not know about the proposals of “Rosneft”. The representative of the Ministry of economic development said that the Ministry is not yet familiar with the proposals, but does not support them — the reduction of tariffs will lead to a significant loss of revenue for natural monopolies.
The energy Ministry has received the instruction of the Cabinet of Ministers, confirmed the representative of the Ministry, warning that the freezing and especially the reduction of tariffs seems appropriate — this will lead to under-financing of investment projects of Transneft. The latter, explained in the Ministry of energy, this may shift the timing of the input of oil and product pipelines, why will suffer oil companies.
The net profit of “Transneft” from crude oil and petroleum products on the domestic market this year will reach about 290 billion rubles, says analyst Andrew Raiffeisenband Polishko. He said if the offer “Rosneft” is taken, losses will amount to 145 billion According to estimates by Dmitry marinchenko from Fitch, the annual loss Transneft JSC can reach 125 — 130 billion rubles — almost a third of the expected EBITDA in the current year.
Analysts point out that the offer “Rosneft” will be problematic, it is unlikely that the government will agree. However, notes Polishko, probably, “Rosneft” will be able to achieve the freeze in transportation tariffs.