Russia resumed crude oil supply to Central Europe via Ukraine. A problem with transit charges caused the oil pipeline to be temporarily out of service, but the Hungarian refiners paid the charges to solve the problem.
Hungary’s MOL said in a statement that it had confirmed on Thursday that Russian oil had begun to arrive in Slovakia. It will arrive in Hungary on the 11th. The transit freight charges agreed upon for payment do not cover transport to the Czech Republic.
Igor Deyomin, a spokesman for state-owned Russian pipeline operator Transneft, earlier told Bloomberg that supplies to the southern Druzhba pipeline had resumed as planned. He said he had received confirmation from Ukraine that it was ready to resume transit.
The Southern Druzhba Pipeline, which supplied Russian crude to Hungary, Slovakia and the Czech Republic, ceased operations on August 4. Transneft sent transit charges to Ukrainian pipeline operator Ukurtransnafta, but European banks refused to process them, citing sanctions once morest Russia.
In response to this, MOL paid the transit transportation fee to Ukraine on the 10th. The northern Druzhba pipeline, which runs through Belarus to Poland and Germany, was not affected by the problem.
Six European refineries depend on crude delivered through the Druzhba system for all, or part of, their feedstock Sources: Bloomberg; AW ConsultingDruzhba’s Dependents
Original title:Russia Resumes Oil Flows to Central Europe as Fee Is Paid (1)(excerpt)
(update with details)
