Thus, transportation costs, export duties and other costs exceeded the average value of the Russian Urals export mix in North-Western Europe and the Mediterranean region.
On March 30, the quotation of "Urals FIP Western Siberia Formula" was equal to -12,8 dollars per tonne, and on March 31, - decreased to -15,4 dollars per tonne. Delivery under FIP (Free In Pipe, - 112 International.) stipulates that the seller will deliver the raw materials to the pipeline at his own expense.
This situation has caught many market participants by surprise, as their contracted oil prices, both annual and short-term, are based on the formula's value during the month of delivery.
According to analysts, exports will become disadvantageous if the current situation remains the same within a month.
As we reported earlier, Stockholm Arbitration Tribunal issued a decision in favor of Polish gas company PGNiG ending the 5-year dispute about the price for gas with Russian Gazprom.
The Russian company is obliged to return about 1.5 billion dollars to PGNiG.