Обвал Литвы

Strategic oil refineries (hereinafter – Refineries), whose oil products are transshipped through Company's oil terminals, are in east and southeast directions. Those refineries are Mažeikiai plant in Lithuania (managed by AB ORLEN Lietuva, hereinafter - Orlen), OJSC Mozyr and OJSC Naftan Refineries in Belarus (located in Mozyr and Novopolotsk), as well as nearest located refineries in Russia.

The company's competitors are all oil product handling
terminals operating in the ports on the eastern coast of the
Baltic Sea and in the port of Odessa (Ukraine). Among
them, the main competing ports are: Ust-Luga, Primorsk,
St. Petersburg, Ventspils, Riga, Tallinn.

It should be noted that the competitive environment in the
oil transhipment market is becoming more aggressive:
Russia seeks to tranship as much Russian oil as possible
only through its ports in the Gulf of Finland (St. Petersburg,
Primorsk, Ust-Luga), and petrochemicals, which are
currently being loaded in Finnish and Baltic ports. At the
same time, over the last few years, Russia’s interest in
directing to its ports not only the oil products of Russian
origin, but Belarusian ones as well, has been observed.

It is pointed out that due to the decrease in the flow of oil
products of Russian origin to the Baltic States, Estonian and
especially Latvian ports are losing more and more of the
main oil product flows. Consequently, due to the shortage
of the cargo flows, Estonian, and especially Latvian ports,
are becoming more active and strong competitors for the
Company's oil terminal, especially in the field of Belarusian
oil products transshipment.

During first half of 2020 port of Klaipėda handled about
2.95 million tons of oil products, i.e. 1.07 million tons or
26.7% less than during the same period of 2019.