RIGA - Yukos, Russia's No. 2 oil producer, has once again requested Latvian state assistance on oil transit issues, as the company has failed to reach an agreement with Ventspils Nafta on supplying the terminal with crude oil without the use of intermediaries.
During a meeting between Yukos management and Deputy Prime Minister Ainars Slesers on July 31, the Russian oil major said that it would not be ready to boost oil transit volumes through Ventspils unless it secures a cooperational agreement directly with the oil terminal.
Russia's state-owned crude oil pipeline monopoly Transneft has stopped all oil supplies via pipeline to Ventspils as of this year, though a few crude producers have managed to circumvent the problem by delivering more oil by train.
The meeting was attended by Yukos Vice President Mikhail Yelfimov and oil transit executive Yuri Ivanov.
Una Ulme-Sila, adviser to Slesers, said that Yukos managers repeatedly urged the Latvian government as one of the shareholders in Ventspils Nafta to help speed up the prolonged negotiations.
In early June Yukos sent a letter to the Latvian government complaining that Ventspils Nafta is evading any direct supply deals, offering only contracts through middlemen Latvijas Naftas Tranzits and VEL KS.
Yukos Vice President Mikhail Brudno said in the letter that "these intermediary companies receive reductions of 30 percent - 35 percent on the service costs for oil transit" offered by Ventspils Nafta, which "causes additional barriers preventing the renewal of oil transit through Ventspils."
A Ventspils Nafta spokesperson said that the terminal was interested in stepping up cooperation with Yukos and is already handling more of the company's oil products at the terminal this year.
At the same time the oil terminal claims it has not yet received any answer from Yukos, which has been facing massive state pressure at home, adding "we are sure that sooner or later mutually beneficial solutions to the negotiations will be found."
Ventspils Nafta said that it operated under global competition and adheres to general oil transit business practices, just as any other Russian oil exporting company does.
The oil terminal also voiced indignation toward the deputy PM for meeting with businessmen to discuss the Latvian oil terminal, even though he is no shareholder.
Ventspils Nafta admits that the terminal and the state of Latvia, one of the largest shareholders, must solve serious tasks for the company to continue to operate but can not really comment any meetings between Slesers and its business partners.
Slersers has been an outspoken critic of the oil terminal since coming to power last November, leveling charges of a lack of transparency and rigged privatization procedures at terminal managers, including Ventspils Mayor Aivars Lembergs.
Yukos managers met with Economy Minister Juris Lujans last month to air out the same transit issues, a meeting to which the minister reportedly agreed on condition that Brudno send a letter to Prime Minister Einars Repse calling for direct talks about resuming oil transits through Ventspils Nafta.
Earlier Lujans announced that the agreement between VN shareholders needs to be amended as currently the state cannot influence any decision-taking by LNT. The issue was raised at the talks between the minister and LNT representatives on June 6.
