LUKoil Asks Putin to Approve Diesel Pipeline Through Ukraine, Report Says

Russia's second largest oil producer LUKoil has launched a bid to buy a diesel pipeline which runs through Ukraine to Hungary, Vedomosti reported on Thursday citing a letter from the company's head to President Vladimir Putin.

A local subsidiary of Russian oil pipeline monopoly Transneft has been operating the pipeline, a bone of contention between Transneft and local Ukrainian authorities.

Vedomosti said Putin had approved the bid after receiving the letter, which said that following the purchase of the pipeline's owner, PrikarpatZapadTrans, a consortium of Russian and European companies would be created to operate the pipe.

A LUKoil spokesman declined to comment.

In 2013, the pipeline carried 925,000 tons of oil products, mainly diesel, to Ukraine's domestic market, while 815,000 tons were sent to Hungary.

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