Ukraine Halts Oil Transit Through Druzhba Pipeline

Ukraine's main oil pipeline system operator, Ukrtransnafta, suspended oil transportation through the Ukrainian pipeline network on Aug. 4, a Russian state-owned media company reported on Tuesday.

The move came after Russia's pipeline monopoly Transneft failed to make payment to Ukraine's Ukrtransnafta.

The pipeline is the southern branch of the Druzhba pipeline that transports Russian oil to refineries in Hungary, Slovakia and Czechia.

"Indeed, Ukrtransnafta completely stopped pumping oil to Hungary, the Czech Republic and Slovakia along the southern branch of Druzhba on August 4 at 6: 10 am. However, transit through Belarus in the direction of Poland and Germany continues," Igor Demin, spokesman for the President of Transneft, told RIA Novosti.

Demin said the Ukrainian company's transportation services were fully paid in advance, but the transit payment was returned to Transneft's account.

He explained that Gazprombank notified Transneft of the return of payment to the bank due to sanctions imposed from the seventh EU sanctions package.

The Druzhba pipeline passes through Belarus, Ukraine, Poland, Germany, the Czech Republic, Slovakia, Hungary, Latvia and Lithuania. Ukrtransnafta owns the Ukrainian section, the transit of which is paid by Russia. -