Oil flows to resume via Ukrainian section of Druzhba oil pipeline

JSC Ukrtransnafta resumed the oil transportation via Ukrainian section of the Druzhba oil truck pipeline in direction of Slovakia and Hungary. 

It should be recalled that on August 4, JSC Ukrtransnafta was forced to halt russia’s oil transit via Ukrainian section of Druzhba oil truck pipeline due to the failure of PJSC Transneft to make the advance payment for the oil transportation. 

The contract between Ukrtransnafta and Transneft for transportation services requires 100 % prepayment for oil transit flows.  Therefore, transportation is possible only in the event of the prepayment for such services. 

Since no funds were received from PJSC Transneft, MOL, the Hungarian oil company, being the main consumer of oil transported by the southern branch of Druzhba oil truck pipeline, took the initiative to undertake to pay transit fee for russian oil transportation.

On 10 August 2022, JSC Ukrtransnafta received payment for transportation services from MOL, the Hungarian oil company, and at 4:30 p.m. Kyiv time, once the funds were received to the account, resumed the oil flows via Ukrainian section of the pipeline. 

Ukrtransnafta has received no data on transit fee payment from the Czech Republic so far. Ukrtransnafta hasn’t received any official letters from Transneft informing that Mero, the company operating the section of Druzhba pipeline in the Czech Republic, would pay transit frees for the oil flows to that country.

Ukrtrasnafta continues to fulfil its contractual obligations as normal.