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Halted shipments of Russian oil resume to Slovakia

by Index Investing News
August 10, 2022
in World
Reading Time: 3 mins read
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PRAGUE — Oil shipments from Russia via a vital pipeline to a number of European nations resumed after an issue over funds for transit was resolved, Slovakia’s Economic system Minister Richard Sulik mentioned on Wednesday.

“Oil is already on Slovakia territory,” Sulik mentioned on Fb. He gave no additional particulars.

However no oil has reached the neighboring Czech Republic but, the nation’s Mero pipeline operator mentioned, and Hungary additionally was nonetheless to obtain deliveries by Wednesday night.

Russian state pipeline operator Transneft mentioned Tuesday it halted shipments via the southern department of the Druzhba, or Friendship, pipeline, which runs via Ukraine to the Czech Republic, Slovakia and Hungary. The northern leg of the Druzhba pipeline, which runs via Belarus to Poland and Germany, was unaffected, Transneft mentioned.

Transneft cited problems as a consequence of European Union sanctions for its motion on Aug. 4, saying its fee to the corporate’s Ukrainian counterpart was refused.

Earlier Wednesday, Sulik mentioned the funds can be made by Slovak refiner Slovnaft after each the Russian and Ukrainian sides agreed to the answer. Slovnaft is owned by Hungary’s MOL power group.

MOL confirmed the cash has been transferred. However Slovnaft spokesman Anton Molnar mentioned the deal lined solely shipments to Slovakia and Hungary and to not the Czech Republic.

Czech Trade and Commerce Minister Jozef Sikela mentioned his nation has joined forces with Polish authorities to search for choices to renew oil shipments to the Czech Republic. Two Czech oil refiners, together with the one in Litvinov that processes Russian oil, are owned by Poland’s oil and power big PKN Orlen.

Sikela didn’t present extra particulars.

Slovakia receives virtually all its oil via the Druzhba pipeline. Sulik mentioned the fee is price some 9–10 million euros (as much as $10.2 million).

He mentioned his nation would work on a long-term resolution to the issue which he mentioned was attributable to the refusal of an unnamed financial institution in Western Europe to switch the cash as a result of sanctions imposed by the EU on Russia for its struggle in opposition to Ukraine.

“I wouldn’t search for a political context behind it, there’s none,” Sulik mentioned.

Nevertheless, Simone Tagliapietra, an power skilled on the Bruegel suppose tank in Brussels, mentioned Russia has weaponized pure fuel heading to Europe by claiming technical points, and “this opens questions on whether or not it would now do the identical with oil.”

Russia has blamed gear repairs for its choice to slash flows via the Nord Stream 1 pipeline to Germany, whose authorities has referred to as it a political transfer to sow uncertainty and push up costs amid the struggle in Ukraine.

EU leaders agreed in Could to embargo most Russian oil imports by the top of the 12 months as a part of the bloc’s sanctions over Moscow’s invasion of Ukraine.

The embargo covers Russian oil introduced in by sea, however allowed momentary Druzhba pipeline shipments to Hungary and sure different landlocked nations in central Europe, akin to Slovakia and the Czech Republic.

“These nations are very depending on Russian oil and as such they could face shortages within the brief time period ought to the interruption be lasting,” Tagliapietra mentioned.

Some drivers in Hungary have been anticipating that on Wednesday, prompting MOL to attraction to the general public asking prospects to cut back their petrol purchases.

“For now, I maintain attempting to maintain my automobile’s tank topped up, so I don’t run out of gasoline. After which we’ll see,” mentioned Erzsebet Kovacs.

———

Courtney Bonnell in London and video journalist Bela Szandelszky in Budapest, Hungary, contributed.

———

Observe AP’s protection of the struggle in Ukraine at https://apnews.com/hub/russia-ukraine



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