Russia suspends LPG exports to Ukraine again – traders

MOSCOW (Reuters) – Russian exporters have suspended liquefied petroleum gas (LPG) exports to Ukraine for the second time in a month because Russia’s regulator has not given clearance for the shipments, traders said on Thursday.

Russia restricted LPG exports to Ukraine in early April for a few days citing concerns it could be used for military purposes.

Russian railway statistics, seen by Reuters, also showed there had been no LNG exports to Ukraine from Russia since May 1.

Relations between Kiev and Moscow plummeted after Russia annexed the Crimean peninsula in March 2014 and separatist fighting erupted in Ukraine’s eastern Donbass region.

Traders said the Russian regulator, the Federal Service for Technical and Export Control (FSTEC), had not given clearance for the LPG shipments.

The FSTEC was not immediately available to comment.

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.

(Reporting by Damir Khalmetov; Writing by Vladimir Soldatkin; Editing by Edmund Blair)

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