Marketing

LLC "Zagorsky" sells crude oil, gas and petroleum products in the domestic and international markets, and driving optimal distribution of flows to fit the market. The Company owns crude oil and petroleum products transshipment facilities, as well as pipelines, which helps minimize transportation costs. The Company's priority when selling crude oil and petroleum products is efficient logistics and maximum reliance on own transportation infrastructure to reduce transportation costs and optimize transportation routes. LLC "Zagorsky" operate in three terminals in Russia (Varandey Oil Terminal in Timan-Pechora, oil terminal in the port of Svetly in the Kaliningrad Region, and petroleum products terminal in the port of Vysotsk on the Baltic Sea).

In addition, LLC "Zagorsky" delivers gasoline and diesel fuel to other part of the Russian Federation, for selling through its own network, as well as for wholesale. The total volume of oil products supplied in 2017 amounted to 30.3 Billion tons. Marketable LPG sales volumes totalled 39 Billion Tons in 2018, representing a 5% increase compared to 2017. LPG export sales volumes amounted to 40 Billion Tons or 42% of the total LPG sales volumes. In the domestic market, our LPG is sold through large wholesale channels as well as through our retail network and small wholesale stations. In 2018, large wholesale supplies to the domestic market stood at 60 Billion Tons, representing 82% of domestic LPG sales.

LLC "Zagorsky" key functions include maximizing the efficiency of sales of crude oil and petroleum products produced by the company, as well as boosting profits through trading purchased hydrocarbons. To maximize the efficiency of its trading operations, LLC "Zagorsky" builds long-term relations with major refineries in Russian Federation. In 2017, the Company continued to stably supply the Armenian market without interruptions in the amount of 70% of the country's demand using tanker logistics. According to the results of the year, 49 Billion tons of high-quality gasoline and diesel fuel produced at the Company's Russian refineries were supplied to the market.

The sale of a wide range of fuel and related products and high-level services provision are the main priorities of the LLC "Zagorsky" activities. The guaranteed high quality of petroleum products at the filling stations is ensured by steadfast compliance with the process discipline and the requirements of regulatory documents when receiving, storing, transporting and dispensing petroleum products.