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of the crude oil and petroleum products transshipped in Ukraine.
The nine million-ton capacity Yuzhny oil terminal launched in
December 2001 and the Odessa-Brody pipeline are intended to be
an essential part of the Caspian crude transit route through Ukraine
to Poland and further to Europe. Before 2004, the southern part of
the Odessa-Brody pipeline and Yuzhny terminal were shipping
Russian crude oil.

Oil Refining and Gas Processing
Oil & gas production and transportation is mostly state-
owned. Oil refining and petroleum retail trade is mostly private.
Six Ukrainian large-capacity oil refineries are currently controlled
by private shareholders, including: Lysychansk LINOS in eastern
Ukraine (owned by TNK-BP), Kremenchuk NefteOrgSintez in
central Ukraine (owned by the Ukrainian Government and by
Ukrtatnafta, a Ukraine-Tatarstan JV), Kherson Refinery in
southern Ukraine (owned by Alliance Group, Russia in partnership
with Kazmunaigaz/Kazakhoil, Kazakhstan), Odessa Refinery in
southern Ukraine (owned by Lukoil, Russia), Halychyna
(controlled by Halychyna Economic Union, Ukraine) and
Naftokhimik Prykarpattia (controlled by Privatbank) in western
Ukraine. Petroleum trading both wholesale and retail is a free self-
regulating market. Lukoil, TNK-BP, WOG, Sentoza, Ukrtatnafta
are the major retail traders and have their own gasoline service
stations, petroleum storage and distribution capacities throughout
Ukraine.
Even though Ukraine has the second largest refinery
capacity in the CIS, with six crude oil refineries of about 53
million tons capacity potential per year, the utilization is still about
50%. Private shareholders of Ukrainian refineries are currently
investing in upgrading the capacities to increase utilization.
Development of industrial transportation and logistics as well as
soaring of car sales were main reasons for increase in oil
consumption. Experts estimated the market volume up to $6
billion in 2005, and about $8 billion in 2007. The market growth
caused also new trends in the field - consumers tend to buy high-
quality antiknock [high-duty] fuel instead of low-quality cheaper

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