MOSCOW: Russia suspended exports of liquefied petroleum gas (LPG) to Ukraine earlier in April over concerns it could be used for military purposes, traders said on Wednesday.
Traders said railcars loaded with LPG have been queuing at the Russia-Ukraine border after Russian customs blocked their passage to the neighbor.
Russian Railways issued an order which says the owners of the LPG cargoes needed special permission from the exports regulator to ship to Ukraine.
“LPG has got onto the list of goods which are dual purpose,” a trader said, referring to the goods which could be used both for civil and military purposes.
LPG, or propane and butane, is usually cheaper than many other kinds of fuel, such as gasoline. It can be used in cars, household utilities or to produce electric power.
Ukraine is Russia’s second-largest LPG market after Poland. Last year, Russia shipped 800,000 tonnes of the fuel to Ukraine.
Russian-backed separatists have gained control of some regions in eastern Ukraine after Moscow annexed the Crimean peninsula in 2014.
