Moscow gov't promises no fuel crisis

There won't be fuel crisis in Moscow, head of the economic security department of the Moscow government and Board member of the Moscow Oil Refinery Alexander Korsak announced at a press conference in Moscow today. According to him, the interruption of oil supplies to the Refinery will not end up with a fuel crisis. Nevertheless, it may lead to some raw oil deficit and make gasoline prices bounce. He refused to go into details and specify the possible increase in prices.

At the same time, Vice President of the Moscow Oil Company - the operator of the Refinery - Yevgeny Sevostyanov mentioned that the Refinery would have enough raw oil for only three working days. The main facilities of the Refinery were switched to circulation mode and refine only 7,000 tons instead of 28,000 daily.

It is worth mentioning that yesterday the Transneft oil company cancelled all raw oil supplies to the Moscow Oil Refinery in accordance with a ruling of the Orenburg Court that had laid a ban on oil supplies to the Moscow Oil Company. RosBusinessConsulting has information that the court declared a deal between the Company and the Refinery illegal since it was struck by Shalva Chigrinsky, who appeared to be the President of the Moscow Oil Company and the Chairman of the Board of Directors of the Moscow Oil Refinery at one time. As a result, this deal is classified as "a deal with interest." According to law, it should have been approved at the shareholders' meeting of the Moscow Oil Refinery, which wasn't done.