News ID: 323400
Published: 0239 GMT August 10, 2022

Russian oil pipeline flows set to resume after Hungary settles transit bill

Russian oil pipeline flows set to resume after Hungary settles transit bill
DAVID W CERNY/REUTERS

An employee works at the end of the Druzhba oil pipeline at Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, on August 10, 2022.

Russian oil flows halted to parts of Europe should resume after Hungarian group MOL paid transit fees owed to Ukraine, officials and a minister said, providing a temporary solution to the latest disruption of Russian energy supplies.

Russian state-owned news agency RIA reported the pipeline monopoly Transneft planned to resume oil pumping through the southern branch of the Druzhba, or Friendship, pipeline at 1600 Moscow time (1300 GMT), Reuters reported.

On Tuesday, Transneft said Russian oil pipeline flows had been suspended to parts of central Europe since Aug. 4 because Western sanctions prevented the payment of transit fees from Moscow to Ukraine.

The suspension drove up oil prices, which have already surged along with those for other forms of energy, as Russia's military operation in Ukraine has raised concerns of shortages, especially in Europe, which depends on Russian fuel.

On Wednesday oil prices fell after the news the Druzhba pipeline flows would resume, and also on expectations of weaker demand.

Central European countries, including Hungary, are especially reliant on Russian energy and Hungary has criticised European Union sanctions against Moscow.

MOL said on Wednesday it had transferred the transit fee for the use of the Ukrainian section of the pipeline, which it said provided "a swift solution".

 

 

 

 

 

   
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