It is reported that the Ukrainian parliament has permitted companies and groups of companies with state shares to buy oil, crude fuel and fuel for resale or processing without tenders with 265 lawmakers voting in favor.

According to the law, purchase of services in processing, production, transportation, haulage, storage, pumping off taking, quality checks, customs brokerage, information analytical, financial and insurance was permitted without holding tenders.

The authors of the law, MP from the Regions Party MS Iryna Horyna and MP from Out Ukraine People Self Defense faction Mr Ksenia Liapina said in the explanatory note to the draft bill that the changes in tender laws will allow Ukraine to meet the terms of purchase on foreign markets, in particular, Azeri Light oil, as the present law in the state procurement area complicates carrying out such operations.

The document said "Energy on the market is sold under quotations from international exchanges, which explains the quick change in positions on the market. This directly impacts agreements on the purchase of oil and fuel and requires changing the price and the terms and conditions for supplies."

The note read that the terms for signing purchase agreements foreseen in Ukrainian law under the procedure of open auctions total up to 65 to 70 days and up to 40 days for auctions with one bidder.

The document was drawn up to reinforce Ukraine energy stability through increasing the efficiency of the country oil refining complex.

(Sourced from Interfax)