Impact of external environment
Economic environment
Shale oil as VKG’s main product competes with other fuels in a globally open raw materials market where the balance of demand and supply depends on the overall economic environment and the decisions of producers with significant market influence.
Regulative environment
The political decisions made at the European Union level as well as at Estonia’s level are like a strong headwind that impedes VKG’s competitiveness in the fight for its place in the global market of oil products.
Availability of raw material
The availability of oil shale as VKG’s main production input depends on national decisions in shaping the oil shale distribution system. In competition with a state-owned company, VKG has to actively stand for its rights to make sure that such decisions do not tend to be favourable towards the state-owned company.