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August 10, 2016

Volume 17 Issue 52

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Lube Supply Resumes for Ukrainian Railway

Ukraine's state railway Ukrzaliznytsia resumed its normal lubricant supply after a court reviewed the state monopoly’s appeal of a previous court decision and ruled in its favor.

The ruling went into effect July 27.

On May 23, Kiev’s business court decided in favor of Miroil, a lube supply tender bidder that objected to Ukrzaliznytsia’s decision to grant its supply agreement to another bidder, Trade Commodity.

The railway company appealed that ruling, saying that it halted the lubricants supply and threatened the operation of the railway company and normal transportation of passengers and goods in the country. “We were in a critical situation for over two months because the supplied backlog of lubricants was spent, and the new supplies were blocked by the court decision,” Ukrzaliznytsia said in its July 29 news release.

Photo: Ukrzaliznytsia

Thanks to a court decision, Trade Commodity is again supplying lubricants to Ukraine's state-owned railway.

Under the revived contract, Trade Commodity is set to ship to Ukrzaliznytsia 8,500 metric tons of different types of railway lubes. “The net worth of the finished products is 162 million Ukrainian Hryvna [U.S. $6.5 million], or around 60 percent of the total lubes the Ukrainian railways consume annually,” the company said.

The railway monopoly insists on immediate improvement of the procurement legalization in Ukraine and said it hopes that transferring the procurement operations to electronic format could make them more safe and expedient with no losses for either party.