Russian Railways introduce a discount on the transit of Turkmen oil products through Makhachkala

Russian Railways introduce a discount on the transit of Turkmen oil products through Makhachkala

The Company Russian Railways will introduce a 50% discount to the tariff for the transit of diesel fuel and fuel oil from Turkmenistan through the port of Makhachkala to the Russian ports in the Azov-Black Sea basin by the end of this year. This decision of the Board is posted on the company’s website.

“Setting… to the CIS Tariff Policy rates of a 0.50 index for the transit of diesel fuel… and fuel oil… in a private (not owned by the carrier) wagon from Turkmenistan via the port of Makhachkala towards the Russian ports in the Azov-Black Sea basin, as well as the return of empty wagons after unloading”, the Russian Railways report reads.

The index shall come into force from the moment the decision has been taken and is valid until December 31, 2019 inclusive. The introduction of a discount on the transit of Turkmen diesel fuel and fuel oil through the Makhachkala port is most likely a measure intended to restore the confidence of Turkmen shippers in the transportation of energy resources on this route.

Once, Turkmen companies began to transport their cargos through Baku due to abuses in the port of Makhachkala, and many foreign companies either followed this example or drastically reduced shipments.

The situation began to change after the appointment of State Duma Deputy Speaker Vladimir Vasiliev as acting head of Dagestan. A set of measures has now been taken to ensure the safe transit and prevent the theft of oil.

As a result, Turkmen oil traders again started to use the Makhachkala port to export their products to world markets.

Nury AMANOV