Russia blocks oil move by pipeline to Central, Jap Europe

Russian oil has stopped flowing by a pipeline that feeds international locations in Central and Jap Europe, in one other blow to a area grappling with the lack of very important power provides from Russia.

Authorities-owned oil-pipeline operator Transneft PJSC stated on Tuesday that crude exports by Ukrainian territory had stopped on August 4. It attributed fee difficulties as a consequence of Western sanctions on Moscow and stated Ukraine’s pipeline operator had refused to move crude. don’t obtain cash.

A spokeswoman for Naftogaz NJSC, the mum or dad firm of Ukraine’s state power agency and pipeline operator Ukrtransnafta, stated it could concern a press release afterward Tuesday.

Transfer Savers provides by the southern department of the Druzhba pipeline carrying oil to Slovakia, Hungary and the Czech Republic and can seemingly intensify European efforts to purchase crude from non-Russian sources. The international locations are closely depending on Russian oil and pure fuel and are among the many most uncovered economies in Europe, which are actually operating off provides.

World power benchmark Brent crude costs rose 1.3% to $97.88 a barrel, reversing earlier losses. Crude oil costs have tumbled in latest weeks on issues of a slowing world development price.

The transfer is yet one more blow to a area reeling from the lack of very important power provides from Russia.


Igor Grusak/DPA/Zuma Press

Friendship—the title of the Soviet-era Druzhba pipeline—is a core a part of the EU’s power infrastructure. In recent times, it has transported a million barrels of crude oil per day to a slew of European international locations.

Transneft stated on Tuesday that oil was nonetheless flowing from the northern department to refiners in Poland and Germany. The affected southern department enters northern Ukraine from Belarus and exits western Ukraine. It splits, with one sub-branch going by Hungary and the opposite by Slovakia into the Czech Republic.

Transneft stated it had paid on July 22 for the transit of Russian oil by Ukraine in August, however the cash was returned to its account six days later.

Transneft stated that fuel big Gazprom PJSC and Gazprombank JSC, a unit of Transneft’s banker, stated the cash was withdrawn as a result of EU sanctions that got here into power on 21 July, and for which European banks have been required to make cross-border funds. This requires acquiring permission from the nationwide authorities. with Russia.

Transneft stated it’s working with UkrTransnafta to resolve the difficulty.

The significance of the pipeline contributed to tensions contained in the European Union when the bloc stitched collectively sanctions on Russian oil following the invasion of Ukraine. The European Union finally agreed to ban crude oil imports by ship in six months, however to briefly exempt pipeline imports, profitable over Hungary.

The European Union depends on Russia for many of its oil. In line with Amrita Sen, co-founder of consulting agency Vitality Elements, in latest months, about 500,000 barrels of crude flowed each day from the northern department of Druzhba and about 300,000 barrels from the southern department.

Central European refiners, equivalent to these run by Hungary’s MOL Group, are on the southern finish of the Druzhba pipeline.,

Adria could import a few of the oil from the pipeline, which begins on the Croatian coast.

Western leaders are getting ready for the chance that Russian pure fuel flows by the key Nord Stream pipeline could by no means return to full ranges. WSJ’s Shelby Vacation explains what the power disaster may appear like in Europe, and the way it may unfold to the world. Illustration: David Fang

write to Joe Wallace at

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Printed August 10, 2022, in print version as ‘Moscow halts oil move to elements of Europe’.

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