12:02 26.06.2015

WOG challenging purchase of 100,000 tonnes of diesel fuel by Ukrzaliznychpostach from OKKO in competition agency

2 min read
WOG challenging purchase of 100,000 tonnes of diesel fuel by Ukrzaliznychpostach from OKKO in competition agency

WOG Aero Jet LLC (Kyiv) is challenging the purchase of 100,000 tonnes of diesel fuel for use on the railways by state enterprise Ukrzaliznychpostach from private enterprise OKKO-Business Contract (Lviv) in the Antimonopoly Committee of Ukraine.

According to a committee report, its permanent administrative commission for considering claims on the violation of the law in state procurements accepted a claim of WOG Aero Jet regarding the above-mentioned tender. The company said that the customer violated the procurement procedure and asked it to cancel all the decisions made after the opening of bids.

The claim will be heard on July 21.

On June 12, Ukrzaliznychpostach accepted the offer of OKKO-Business Contract in a tender to buy 100,000 tonnes of diesel fuel with the price of UAH 1.899 billion.

Ukroilproduct LLC and OKKO were allowed to participate in the assessment of the bids. The price offered by OKKO-Business Contract was lower.

The agreement is to be signed no later than July 12, 2015.

The tender included 10 lots of 10,000 tonnes of diesel fuel each.

Levada Oil LLC (Berdiansk, Zaporizhia region) submitted a bid for lot eight with the price of UAH 199.5 million, Perfect Trading Oil LLC – UAH 190.999 for lot one, Ukroilproduct LLC (both based in Kyiv) – UAH 201 million for lots one-five and UAH 199.92 million for lots six-ten.

State enterprise Ukrtransnaftoproduct also submitted a bid for all lots with the price of UAH 199.8 million each; Digest Group – UAH 192.804 million for lot five and UAH 197.796 million for lot seven; WOG Aero Jet LLC (all based in Kyiv) - UAH 229.8 for each lot and OKKO-Business Contract – UAH 189.99 million for each lot.

WOG is part of Kontinium Group. The core business of Kontinium Group is fuel trading (WOG filling station chain), food industry (Galychyna dairy company, the producer of KOMO cheese), telecommunications (CDMA Ukraine operator), construction material production (Euroton brick producer), finances, and real estate.

The shareholders in Kontinium Group are Ihor Yeremeyev, Stepan Ivakhiv, Serhiy Lahur and Petro Dyminsky.

Galnaftogaz manages one of the largest filling station chains in Ukraine with around 420 filling stations under the OKKO brand. The majority shareholder in the company is Vitaliy Antonov.

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