Transportation of Oil and Petroleum Products

The policy with respect to transportation tariffs is determined by the government authorities in order to ensure a balance of interests between the government and all parties involved in the transportation process.

The transportation tariffs of natural monopolies are established by the FTS of Russia.

Tariffs depend on the transportation direction, delivery volume, distance to the destination and several other factors. Changes to tariffs depend on inflation as projected by the Russian Ministry of Economic Development, the need of transport infrastructure owners for capital investments, other macroeconomic factors as well as the payback period of economically substantiated costs incurred by natural monopolies.

Tariffs are revised by the FTS of Russia at least once a year, including tariffs for loading and unloading work, handling, shipment and other tariffs.

Average transportation cost per one tonne of oil for export to the Company’s refineries and for export from the Company’s refineries, RUB/t
2013 2014 Change, %
OIL
Export
Pipeline 1,644 1,681 2.3
CIS
Pipeline 1,057 1,204 13.9
Transportation to oil refineries
Omsk Oil Refinery 505 509 0.9
Moscow Oil Refinery 983 972 –1.2
Yaroslavl Oil Refinery 1,011 1,067 5.5
PETROLEUM PRODUCTS
Export from Omsk Oil Refinery
Petrol 3,206 2,401 –25.1
Fuel oil 3,833 4,121 7.5
Diesel fuel 3,362 3,288 –2.2
Export from Moscow Oil Refinery
Petrol 1,651 1,678 1.7
Fuel oil 1,444 1,523 5.5
Diesel fuel 1,792 1,720 –4.0
Export from Yaroslavl Oil Refinery
Petrol 1,126 1,210 7.4
Fuel oil 1,455 1,659 14.0
Diesel fuel 1,467 1,530 4.3

In 2014, the Company shipped 33.5% (37.5% in 2013) of the overall volume of exported oil via

  • Baltic Sea port — Primorsk (31.4% via Primorsk and 6.2% via Ust-Luga in 2013);
  • Druzhba pipeline to the Czech Republic and Germany — 13.1% (22.8% in 2013);
  • Novorossiysk port — 22.9% (16.7% in 2013), including light oil — 10.5% (12.9% in 2013);
  • East Siberia-Pacific Ocean (ESPO) transit pipeline via Kozmino port — 30.5% (23% in 2013).

Among CIS countries oil was only exported to the Republic of Belarus in 2014 (37.2% to Belarus and 62.8% to Kazakhstan in 2013).