Transneft paid 0.6 mln euro more for poor quality oil to Ukraine – Ukrtransnafta

TASS Russian News Agency | Aug 13, 2019 at 5:37 PM

KIEV, July 31. /TASS/. Russian oil pipeline operator Transneft paid about 600,000 euro of the partial compensation to Ukraine’s pipeline operator Ukrtransnafta for the supplies of poor quality oil to the Ukrainian segment of the Druzhba oil pipeline, the Ukrainian company told TASS on Tuesday.

"Ukrtransnafta has received from Transneft a portion of the compensation in the amount of more than 2.9 mln euro for ingress of oil with higher content of organic chloride compounds into the Ukrainian section of the Druzhba oil pipeline," the company says. The Ukrainian party reported transfer of compensations worth 2.3 mln euro earlier. The Russian side further paid about 600,000 euro and this is not the final amount of the compensation, press service of Ukrtransnafta said.

It was reported earlier that oil transit through the Ukrainian section was suspended from April 25 to May 11 of this year due to off-spec oil penetration of the Druzhba oil pipeline. Furthermore, transit was suspended from May 17 to 21 in connection with the need to provide European counterparties with extra time for preparatory activities. No new cases of poor quality oil suppliers were registered.

Situation with Druzhba pipeline

The Druzhba pipeline provides supplies of oil to Belarusian refineries and its transit to Europe through Belarus, Poland and Ukraine.

In mid-April, Belneftekhim reported a sharp deterioration in the quality of the Russian oil running through the pipeline. As a result, several states stopped receiving and refining the Russian oil. The contaminant source was revealed at the Samara-Unecha section. Transneft said that the Russian oil in the Druzhba pipeline was deliberately contaminated. Russia’s Investigative Committee said that contaminated oil was loaded into the Druzhba oil pipeline in order to conceal multiple oil thefts.

Belarusian refineries had to reduce the load due to an insufficient amount of god quality oil. Supplies of on-spec oil to Belarus resumed in early May.

On June 19, a new oil contamination was detected in the pipeline section that goes from Belarus to Poland. Oil pumping at the site, which is controlled by the Polish operator PERN, was suspended and resumed on June 20.