LAST UPDATE: 15.19
Russian oil exports through the southern leg of the Druzhba pipeline have been suspended since early August due to issues related to transit fees.
In a statement, Transneft explains that its payment for transit rights through Ukraine for the month of August, which was made on July 22, was rejected on July 28 because certain sanctions against Moscow came into force.
“Ukrtransnafta stopped transporting Russian oil through the southern leg of the Druzhba pipeline to Hungary, the Czech Republic and Slovakia on August 4,” Transneft spokesman Igor Demin told RIA Novosti. “Indeed, Ukrtransnafta completely stopped the transit of oil to Hungary, the Czech Republic and Slovakia via the southern leg of Druzhba on August 4. Meanwhile, transit via Belarus to Poland and Germany continues as normal,” he said. Flows through the northern leg of the pipeline remain unaffected, Transneft said, according to Bloomberg.
“Gazprombank, which handles the payments, informed us that the payment was returned due to the entry into force of the seventh EU sanctions package,” explained the company’s representative.
There was no immediate comment from Ukrtransnafta.
Despite Moscow’s military offensive in Ukraine since late February, Russian oil and natural gas continue to flow through Ukraine to the European Union, whose members are heavily dependent on Moscow’s hydrocarbons.
The EU in June adopted a phased embargo on Russian oil, mainly calling for an end to crude imports by ship within six months.
Supplies through the Druzhba pipeline were instead allowed to continue “temporarily”, with no end date set, a concession won by Hungarian Prime Minister Viktor Orban, who cultivates relations with Vladimir Putin and whose country is 65% dependent from this cheap Russian oil.
It is noted that Brent for October delivery rose 1.28% to $97.89 a barrel, while US WTI crude for December delivery increased by 1.19% to $91.81 a barrel.
Source: Capital
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