Trafigura Opens Kiev Trading Office

One of the world's largest commodities traders Trafigura has opened a trading office in Kiev, Ukraine's national investment council said May 16.  Trafigura is there to trade gas, having taken the first steps of opening an office there at the end of last year, the council said.

It explained the arrival in terms of the gas market reforms now under way in Ukraine, which is preparing to unbundle its gas supply from storage and transportation businesses. All are state-owned. A number of western firms have opened trading offices in Kiev, such as US firm Trailstone and French Engie, while majors such as Shell and BP have been there for many years.

To complete this reform Ukraine must fully implement European rules and regulations, the council points out. "We hope that that the experience of international players will help the country to cope with this urgent need."

However unbundling – a fundamental principle of energy trading in the European Union – must wait until the two arbitration cases between Ukraine and Russia have been resolved. Naftogaz Ukrainy, the state supplier and owner of transporter UkrtransGaz, holds both the ship-or-pay transit contract and the gas purchase contract.

William Powell