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Kazakhstan halts crude deliveries to Hungary

Kazakhstan has halted crude deliveries to Hungary and Slovakia via the Druzhba pipeline over a row with Ukraine, prompting Russian oil company LUKOIL to intervene to compensate for the loss, Reuters reported on Tuesday, citing traders.

“Kazakhstan has asked (Russia's pipeline monopoly) Transneft to re-route its supplies (planned for Hungary and Slovakia) to other destinations,” an industry source with direct knowledge of the situation told Reuters.

LUKOIL will reroute some 300,000 tons of Ural crude from the Polish port of Gdansk.

Sources said the development followed a move by Ukraine to scrap a crude transit deal with Kazakhstan for 2010 in retaliation for Kazakhstan suspending crude deliveries via Ukraine's Odessa Black Sea port last year. (MTI-Econews)