Russian oil deliveries via the Druzhba pipeline halted for some European countries

The Druzhba pipeline, the main route for importing Russian oil into Hungary, in Szazhalombatta, May 18, 2022. REUTERS - BERNADETT SZABO

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Deliveries of Russian oil through the Druzhba pipeline to some European countries have been interrupted since early August.

This is a branch of this pipeline that goes through Ukraine.

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The company Transneft explains that its payment for the right of passage of Russian oil in Ukraine was refused by the Ukrainian company Ukrtransnafta at the end of July because of Western sanctions.

UkrTransnafta is the company that provides the necessary services for the transit of crude.

However, the payment of these rights would have been rejected, because it would have been made by the bank Gazprombank, which is under Western sanctions.

For the moment, there is no reaction from the Ukrainian side about this interruption of deliveries which immediately caused a rise in the price of a barrel on the markets.

The Ukrainian branch of the Druzhba pipeline supplies oil to three landlocked countries: Hungary, Slovakia and the Czech Republic.

Russia normally supplies around 250,000 barrels per day to these countries.

The other northern branch of the pipeline which passes through Belarus and supplies Poland, Austria and Germany is operating normally.

Despite European sanctions against Moscow, Russian oil and gas continue to transit through Ukraine.

At the end of May, the 27 members of the European Union agreed on a gradual halt by the end of the year of imports of Russian oil transported by boat.

A temporary exemption has been provided for oil transported by the Druzhba pipeline, in order to lift the veto of Hungary, which derives the bulk of its supplies from it.  

To read: G7: "The cap on the price of Russian oil, a gas plant for political purposes"

The solution in the hands of the Hungarian oil company MOL?

In Hungary, the key to the problem may be in the hands of MOL, the Hungarian oil company, explains our correspondent in Budapest,

Florence La Bruyère

.

Even if Hungary is deprived of Russian oil, on which it depends 65%, motorists still manage to fill up.

But closing the black gold faucet falls badly.

Because at the moment, the main Hungarian refinery, located in Szazalombatta, 30 kilometers from Budapest, is in partial maintenance and provides less gasoline than usual.

However, the Hungarian company MOL, the main buyer of Russian oil, claims to have stocks for several weeks.

And the company is working to find a solution for oil deliveries to resume.

In a press release, it indicates that it has started “ 

negotiations to take charge of the fee 

”.

In other words, the Hungarian company offers to act as intermediaries and pay the transit rights to the Ukrainian operator, even if it means then having to make arrangements with the Russian side.

It must be said that MOL has been buying oil from Russia for decades and has excellent relations with its partners.

To listen: Which gas and which oil for Europe?

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  • Energies

  • Oil

  • Russia

  • Ukraine

  • Hungary

  • Slovenia

  • Czech Republic

  • European Union