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Global commodities trading house, Gunvor Group, has sold a 74 percent stake in OJSC Ust-Luga Oil, the operator of Ust-Luga Oil Products Terminal, to a company controlled by Andrei Bokarev, an investor in coal mining, transportation and industrial processes.

In a statement, Gunvor confirmed that it will retain a 26 percent stake and board positions in the company.

"Management and operational principles will be unchanged, and the terminal will remain open to serving the entire Russian market," the company said.

Financial details of the transaction were not disclosed.

Torbjörn Törnqvist, CEO of Gunvor Group, remarked: "Having a strong, independent Russian partner will ensure the export terminal continues to provide fair access for the whole of the Russian oil industry."

Gunvor managed the construction of the Ust-Luga Oil Products Terminal as a wholly owned greenfield project. The facility, located on the Baltic Sea, has a capacity of more than 30 million metric tonnes per annum - including 20 million tonnes of dark oil products and 10 million tonnes of light products - and is considered to be the largest rail-to-ship terminal for petroleum products in the world.

The facility has been operated by JSC Rosneftbunker, a business unit of Gunvor Group.

Gunvor purchased the terminal in 2008. It began shipping fuel oil in January 2011; the first vessel to load fuel oil from the facility was the product carrier SCF Neva, owned by Sovcomflot, on January 31, 2011.

In May 2013, Rosneftbunker began transporting light oil products. The first train, comprising 3,800 tonnes of diesel fuel spread in 63 tank wagons, arrived on April 18 from the Kirishinefteorgsintez refinery.

Ust-Luga

Situated on the Luga River, approximately 110 kilometres west of St. Petersburg, Ust-Luga is located practically on the border between the Russian Federation and the European Union.

The deep water area of the port (17 metres) together with the 3,700-metre approach canal make Ust-Luga the only Russian port on the Baltic Sea capable of admitting dry-cargo vessels with a deadweight of up to 75,000 tonnes and liquid cargo carriers with a deadweight of up to 120,000 tonnes.

The port looks set to continue to play a key role in the transportation of oil products as it is one of the few Russian ports capable of providing access to large deadweight vessels to export processed oil products, thus removing the dependence on foreign export terminals.