bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.07.2018 | Name days: Magda, Magone, Mērija
LatviaLatvia

Lukoil subsidiary causing losses and «traffic jams» on the Latvian Railway

FaceBook
Twitter
Draugiem
print
(+1 rating, 1 votes)

Baltic news, News from Latvia, BNN-NEWS.COM

Currently there are hundreds of railcar tankers «traffic jams» caused by oil trade company Litasco actions.

A subsidiary of the Russian oil company Lukoil Litasco’s decision not to accept the delivery of over 120.000 metric tons (mt) of its fuel oil stored in Ventbunkers (VBU) is seriously intervening with VBU and the Latvian Railway (LDZ) activities.

Ventbunkers reservoirs have currently reached full capacity, however additional 1 700 railcar tankers with more than 100.000 thousand mt of Litasco oil product are already in the territory of Latvia. Given that the tankers cannot discharge the fuel oil, they are placed throughout all Latvian railway stations. LDZ called an extraordinary meeting on January 6, 2011 to carry out immediate measures to ensure future operations of the rail system. Currently Rezekne and Daugavpils border stations are full and the situation is characterised as critical. Dr. Rudolf Meroni, the Chairman of the Supervisory Boards of AS Ventbunkers pointed out that the company makes every effort to resolve the situation as soon as possible.

Litasco delayed the tanker Celtic Sea entering Ventspils port on December 25, 2010, in order to load their fuel oil from VBU reservoirs, resulting in catastrophic damages to LDZ and Ventbunkers, as the latter cannot discharge the oil stored and receive the new shipments currently waiting on the rails. In additon to that Ventbunkers has to pay more than 100.000 dollars per day due to demurrage. As of January 12, the losses already exceeded 1.1 million lats.

There are ongoing speculations Litasco is intentionally creating the fuss in order to make Ventbunkers extend the service contract expired last year, however Litasco still owes Ventbunkers 20 million euro for services rendered in 2010. The value of the products not being shipped could exceed 100 million dollars in total.


Leave a reply

  1. Stulbais Anglis says:

    This article didn’t make much sense to me initially but after reading it through a number of times I think you are trying to say the following. Maybe you could update the article?

    ——–>>>>>
    Lukoil subsidiary crippling Ventbunkers and causing congestion on Latvian Railways

    Litasco’s actions have resulted in hundreds of laden rail-car tankers clogging Latvian railways

    Litasco is a subsidiary of the Russian oil company Lukoil. Their decision not to accept the delivery of over 120,000 metric tons (mt) of their own fuel oil stored in Ventbunkers’ (VBU) reservoirs is seriously disrupting VBU and Latvian Railway (LDZ) activities.

    Ventbunkers reservoirs are full and an additional 1,700 rail-car tankers containing more than 100,000 thousand mt of Litasco’s oil products remain parked up in Latvia. As the tankers have nowhere to discharge their fuel oil they have been distributed throughout the Latvian rail network. LDZ called an extraordinary meeting on January 6, 2011 to plan immediate measures to assure the future operation of the rail system. Currently Rezekne and Daugavpils border stations are full and the situation is classified as critical.

    The tanker “Celtic Sea” was due to enter Ventspils port on 25th December, 2010 but has been delayed because she cannot be discharged due to the reservoirs being full. This is causing serious financial hardship to Ventbunkers who are having to pay US$100,000 per day demurrage to the shipping company. As of 12th January, VBU’s losses already exceed Ls.1.1 million.

    There is speculation that Litasco is intentionally causing this disruption in order to force Ventbunkers into extending their service contract that expired last year. However Litasco still owes Ventbunkers €20 million for services rendered in 2010.

    The total value of Litasco’s products currently held in Latvia may exceed US$100 million.

    <<<<<—–

    Incidentally, I removed the references to traffic jams as I think they are rather misleading. After all, the tankers have not been parked on the main line between Rīga and Daugavpils. I don't think you can describe a line of tankers in a siding as a traffic jam even if it does disrupt storage allocations.

Lursoft: catering sector in Latvia – how much industry leaders earn and pay in taxes

Using a study and compiling data on companies’ business activities for the past three years, Lursoft wanted to find out if it is true catering companies in Latvia work with losses, and what their tax contribution is.

Shooting attack in Canada claims lives

A shooting attack has taken place in Toronto, Canada, with two people having been killed died and 13 others injured.

Farmers in Estonia active in Open Farm Day

Estonian farmers have held their fourth Open Farm Day as over 250 farms in the Baltic country invited everyone interested to experience growing and making of domestic food and agricultural products.

Police commence investigation of an offshore network owned by Lembergs’ daughter

Latvian State Police has commenced an investigation following journalists’ publication of materials about an offshore network owned by suspended Ventspils Mayor Aivars Lembergs’ daughter.

Polish Sejm rushes to change defiant chief Judge of Supreme Court

Poland's legislators have passed rules to hasten the changing of a new Supreme Court chief as part of far-reaching judicial reform that has been criticised by the European Commission among others.

Heat wave to continue in Latvia along with thunderstorms and heavy rain at times

The heat wave active in Latvia will not back off this week – days will remain hot and night-time air temperature will not drop below +20° C. Heavy rain and thunder will be observed nearly every day this week, according to Environment, Geology and Meteorology Centre.

Bulgarian parliament opposes readmission of migrants from EU countries

Bulgarian parliament prohibited the its government from signing bilateral agreements with other European Union member states on readmitting migrants first entered the bloc in Bulgaria.

Week in Lithuania. Liberals ex-leader fails to recover confiscated cash

Eligijus Masiulis, a former Liberal Movement leader on trial in a major political corruption case, has failed to recover cash that was found and seized during searches of his home.

BNN summary of the week: open presidential election in Latvia and no more plastic bags for shoppers

BNN offers a summary of this week’s topical news in a variety of categories: Future; Change; Fight; Decline; Business; Progress.

SRS: cash register reform still stagnates, but has become much faster than it was last year

The cash registers reform continues stagnating. However, it has become much faster than it was a year ago, as reported by State Revenue Service.

Specialists to search for solutions to topical environmental problems in Ventspils

On Friday, 20 July, a meeting was held between Ventspils Commercial Port representatives and specialists from State Environment Service.

Children with functional disorders to receive services financed by EU funds

Child invalids will have access to social services intended to improve their social skills and mobility. More than EUR 4.2 million has been allocated for this goal from the European Social Fund, as confirmed by Latvia’s Central Financing and Contracting Agency.

Producer price level in industry up 4.3% in Latvia

Compared to June 2017, the average level of producer prices in Latvian industry increased by 4.3 % in June 2018. Prices of products sold on the domestic market rose by 4.8 % and those of exported products by 3.7 %.

Total tax debts in Latvia in July – 1.212 billion euros

At the beginning of July total tax debts in Latvia, including outstanding debts, halted debts and debts applied with repayment term extensions, accounted for EUR 1.212 billion, which is 0.8% less than a month prior, according to data from the State Revenue Service.

Survey: every third Latvian resident has received illegal loan offers

Nearly every third resident in Latvia or 31% of respondents admit having received offers to use illegal loan services, as concluded in a survey performed by Latvian Alternative Financial Services Association and SKDS.

Libya opposed to EU's idea to establish migrant centres in North Africa

Libya is against the solution of the European Union to set up migrant centres in the North African country as a means to keep migrants from arriving in the bloc and Libya would not be convinced with financial support, its Prime Minister Fayez al-Sarraj has noted.

Arrest warrant on Catalan ex-President cancelled by Spain

The Supreme Court of Spain cancelled a European arrest warrant for former Catalan regional leader Carles Puigdemont, as Germany refused to extradite him to face accusations of rebellion for declaring the independence of Spain's region, Catalonia in 2017.

Latvian government plans to allow handing expired food to charity

Latvia’s Agriculture Ministry has prepared amendments to the Law on the Supervision of the Handling of Food that provide permission to hand over certain types of food products to charity after the end of their expiry date.

Estonian industrial producer prices up 2.9% since June 2017

Estonian industrial producer price index has risen by 2.9% between June 2017 and the first summer month this year, resulting in an increase of export prices as well, Estonian statisticians have estimated.

Putin urges NATO to quit «irresponsibly» developing ties with Ukraine, Georgia

Russia's President Vladimir Putin cautioned NATO against developing deeper relations with Ukraine and Georgia, evaluating such a policy was irresponsible and would have consequences for the military alliance.

Latvian parliament not in a hurry to support president Vejonis for a second term

Political parties represented in the Saeima are not eager to support President Raimonds Vējonis for his remainder for a second term.

Weather in Latvia will remain warm and even hot at times

Weather in Latvia in the nearest couple of days will be dictated by a cyclone. Because of that the sky will be partially covered by clouds; thunderstorms are also expected, as reported by State Environment, Geology and Meteorology Centre.

Hungary sued in EU Court for criminalising help to illegal immigrants

The European Union's executive body has stated that a law in Hungary that criminalises support for illegal immigrants is in breach with EU law and Hungary has now been referred to the European Court of Justice for the alleged non-compliance.

Estonians buy alcohol in Latvia; country loses EUR 20 million in six months

Latvian stores located close to the Latvian-Estonian border have sold 1.6 million litres of strong alcoholic drinks in the first half year of 2019. This means Estonia has lost more than EUR 20 million in taxes, according to data from Association of Estonian Alcohol Producers and Importers.

Lithuania’s election watchdog slams ruling LFGU over popular TV series

Political messages can be channeled in various ways and the ruling now Lithuanian party, LFGU has chosen a very delicate way of the communications – through a TV series featuring the beauty and the ambiance of Naisiai, a picturesque settlement in Siauliai district.