Lukoil Gets Approval for LPG Supplies to Ukraine

Russia's No.2 oil producer Lukoil has obtained approval from a Russian export control regulator on supplies of liquefied petroleum gas (LPG) such as propane and butane to Ukraine, traders said on Friday.

LPG and diesel were listed as goods of dual purposes, meaning they can be used both for civil and military aims, amid Moscow's tensions with Ukraine.

Only Kremlin-controlled Rosneft has the rights to export LPG to Ukraine, to the tune of around 40,000 tonnes per month. The fuel can be used in cars, household utilities or to produce electric power.

Lukoil has not responded to a request for comment.

According to the industry sources, Lukoil planed to ship around 5,000 tonnes of LPG to Ukraine starting from October.

Several traders also said that Gazenergoset, a subsidiary of gas giant Gazprom, has also got the nod to supply LPG to Ukraine. The company said it has no plans to shop the fuel to the neighboring country.

Another ex-Soviet country, Belarus, has become the largest re-exporter of Russian liquefied petroleum gas. Russia has introduced restrictions on LPG supplies to Belarus, also due to a political row with Minsk, with effect from the fourth quarter.

(Reporting by Damir Khalmetov; writing by Vladimir Soldatkin Editing by Keith Weir)