10 Aug 2022 19:50

Deliveries of Russian oil via Ukraine to Slovakia resume, oil to reach Hungary on Thurs

MOSCOW. Aug 10 (Interfax) - The supply of Russian oil through Ukraine via the Druzhba pipeline has resumed to Slovakia, and crude will arrive in Hungary tomorrow, the Slovnaft company told Interfax.

"Oil is already returning to Slovakia through the Druzhba pipeline, and supplies to Hungary are expected to be restored tomorrow. The technical problem that caused the delay were addressed via prompt actions by MOL and Slovnaft: the company transferred the transit fee to pay for the use of the Ukrainian section, and the Ukrainians, true to their promise, started transporting crude oil through the southern section of the pipeline," a spokesperson for the company said.

MOL and Slovnaft immediately initiated negotiations with the Ukrainians and Russians after the oil supply cutoff and indicated that they would undertake to pay the transit fees. "A quick agreement was reached on this, so transportation through the Druzhba pipeline, which supplies Hungary and Slovakia, is against ongoing without interruption," the company said.

"Both Slovnaft and MOL want to continue to be an active mediator in finding a permanent solution to the changed conditions caused by EU regulation. The fees currently paid will be settled with the Russian side as part of mutual credit," the Slovnaft spokesperson said.

Earlier, Transneft reported that Ukrtransnafta stopped the transit of Russian oil on August 4 due to failure to pay the transit fee. It was noted that the funds sent on July 22 for transit in August were returned to Transneft's account on July 28 in connection with the entry into force of EU Regulation 2022/1269. The southern branch of the Druzhba oil pipeline, which runs through Ukraine, delivers oil to refineries in Hungary, Slovakia and the Czech Republic on the basis of a long-term contract between Transneft and JSC Ukrtransnafta for transportation services on a 100% prepayment basis.

There have been no reports on the resolution of the transit problem to the Czech Republic so far.

Last year, 12 million tonnes of Russian oil, including 3.4 million tonnes to the Czech Republic, 5.2 million tonnes to Slovakia and 3.4 million tonnes to Hungary, were transported through the Druzhba pipeline in Ukraine.