Russian Oil Exports Through Friendship Pipeline Suspended

Energy Trade

Exports of Russia oil through the southern section of the Friendship (Druzhba) pipeline have been suspended due to problems related to transit fees, two sources familiar with the operation of the pipeline reported to Reuters. 

On average, 250,000 barrels of crude oil are delivered from Russia per day the via the southern leg of the Druzhba pipeline to Hungary, Slovakia and the Czech Republic.

Hungary's MOL and Unipetrol, controlled by PKN Orlen, are the main buyers of oil via the route.

The price of MOL reacted violently to the news, falling by 4% in the early afternoon. 

 

Meanwhile, Russian news agency Ria Novostyi reported that it was Ukrainian state company Ukrtransnafta who stopped oil pumping through the pipeline.

According to Russian sources, the company stopped the delivery of Russian oil to Europe on the morning of August 4.

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