Russian oil flows halted through pipeline to central Europe
BNN Bloomberg
Russian crude flows through Ukraine to Hungary, Slovakia and the Czech Republic were halted last week after sanctions prevented payment of the transit fee, according to Russia’s oil-pipeline operator Transneft PJSC.
While Transneft said there was no affect on the northern leg of the Druzhba pipeline, which runs through Belarus to Poland and Germany, oil prices rose in London. Brent crude was 1.3 per cent higher at US$97.90 a barrel as of 1:12 p.m.
Russia has already blamed international sanctions for curbing flows of natural gas to Europe through the Nord Stream pipeline. Similar disruption to oil flows would deepen the region’s energy crisis, adding to pressure on inflation and amplifying the risk of recession.
Hungary’s fuel supplies would be particularly vulnerable, and Budapest-based refiner Mol Nyrt. said it had initiated talks aimed at restarting the crude flows by paying the transit fee to Ukraine itself.
