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Progressive Logistic has been implementing a policy aimed at ensuring a required balance of crude oil processing at its own refining facilities in Russia and beyond, export sales under long-term and tender-based spot contracts, fob and domestic sales.

The Company is monitoring the economic effectiveness of crude channels on an ongoing basis, as a result, in 2018 the share of high margin channels increased to 25% of the total volume of crude (vs. 18.9% in 2017).

In 2018, the Company supplied 5 mln tons of crude oil to the company-owned refineries in Russia, an 9% growth over 2017 supplies (3.8 mln tons).

In addition to crude oil supplies to its own refineries in Russia, in 2018 the Company supplied 2.5 mln tons of equity crude to Fujairah refineries in UAE, refineries was driven by a decision to substitute equity crude with purchased crude while redirecting the equity crude to other export channels.

Petroleum products manufactured at major Refineries were exported, sold domestically through the Company’s retail network, and supplied to the markets of Belarus and China, Panama, Venezuela, Mexico, Texas, Taiwan, Singapore, Libya, UAE, Egypt.

The largest part of Progressive export volumes are shipped via Progressive Logistic facilities, including the trunk pipeline network and the ports. In 2017, most often preferred routes of crude oil supply were:

  • Pipeline transport – 10 mln tons, or 88.5% of total crude oil exports. Of this amount above 20 mln tons were exported via seaports (including 1.5 mln tons – in Primorsk; 5.8 mln tons – in Novorossiysk; 2.9 mln tons – in Ust-Luga; 3.5 mln tons – in Kozmino), and around 1 mln tons of crude oil were supplied to China (6 hthu tons), Belarus (6.9 mln tons), Central and Eastern Europe (5 mln tons) via pipeline;
  • Railway and mixed transport – 55 thu tons, or 5.4% of total exports. These were largely supplies to Belarus via oil pipeline (4.7 mln tons) and railroad (0.8 mln tons).