The Galychyna oil refining complex is preparing to shut down indefinitely. People's Deputy and co-owner of the Galychyna refinery complex Ihor Yeremeyev told DELO about the cessation of production at the largest oil refinery in Western Ukraine and his vision of the situation on the oil market. ... \n \n– Ihor Myronovych, first of all, confirm or deny the numerous rumors that you have sold your stake in "Galychyna." \n \n– I remain a shareholder of "Galychyna." \n \n– What is the situation at this enterprise now? \n \n– "Galychyna" is operating, but in February it will most likely shut down completely. \n \n– What is the reason for this decision? Is it a kind of protest against the abundance of imported petroleum products on the Ukrainian market? \n \n– The plant will stop because it is unprofitable to refine oil. Currently the enterprise is operating at full capacity, but there has not been such an unsuccessful year as 2005 for the oil refining industry in Ukraine. \n \n– But in 2000 there was already a situation when oil refineries were idle. \n \n– Yes, but from 2000 to 2005 they only increased refining volumes. Take, for example, the same "Galychyna," which over five years increased refining volumes from 200 thousand tons to almost 2.5 million tons. But already in 2005 the plant stood idle for eight months. A paradox. \n \nI believe that the government – both the previous and the current one – has worked ineptly in this regard. Two such years in a row – and there will be no plants. Because oil refining is a heavy production, it is constant work with sulfur, it is the destruction of metal. And when a plant is idle, it rots. In the literal sense. \n \n– How would you comment on the recent decision of the government of the Russian Federation to reduce the export duty on petroleum products (on February 1, the Prime Minister of Russia signed a resolution on reducing export duties on goods made from oil, which will take effect in a month)? \n \n– Russia is a smart country with smart government members. By increasing the duty on oil and reducing the duty on petroleum products, they are doing everything to keep raw materials maximally within the territory of the Russian Federation. And to maximally load their own production. This creates jobs and fills the budget. \n \nAnd then finished products at the world market price will be supplied to the territory of Ukraine. And we will pay foreign currency earnings to Russia. And only Ukrainian officials do not understand that the current legislation regarding priorities for imported petroleum products leads to the destruction of domestic production, and we become dependent on importers. \n \n– Why do you speak of an increase in the duty on oil? That indicator was reduced from February 1 to $160.8 per ton. \n \n– But before the New Year it was constantly being raised. And in March, according to the formula, it will be increased again. And the duty on petroleum products in their country (in Russia. – "DELO") is regulated by government resolutions, not automatically by PLATTS indicators (an international agency that determines indicators of fluctuations in world oil prices. – "DELO"), as in the case of oil. \n \n– And still, how will the decision of the neighboring country affect the domestic market? \n \n– The plants will be even more unprofitable. Imports will again dominate the domestic market. At the same time, the price of imported petroleum products will be quite high. Importers who will bring them in will themselves inflate the price of petroleum products in Russia. Thus, they will be providing additional subsidies to Russian producers. Everyone will raise the price by -6, just to take more resources for spring field work. That is how the Russian government stimulated its market to increase the country's export potential. \n \n– From Russia's point of view, everything is correct, but from Ukraine's point of view… \n \n– Ukraine does not protect its market, it does not stimulate the producer. It destroys him. And in such a situation, the domestic producer does not carry out reconstruction, does not carry out repairs of plants, since the enterprises are unprofitable. I repeat, we are destroying our own producer and turning into a state dependent on the importing country. \n \n