Conflicts & War

Hungarian oil company says flows via Druzhba pipeline halted

Budapest, Aug 9 (EFE).- Russian oil flows through the Druzhba pipeline, that serves several central European countries, have been cut, Hungarian energy company MOL confirmed Tuesday.

“Oil supplies through the Druzhba pipeline were halted a few days ago because, according to information, there were technical problems related to transit payments by Russia,” the company told Efe in a statement.

“Although MOL has enough reserves for several weeks, it is working on a solution and has also started negotiations to take over the obligation to pay the fee,” the company added.

Following the announcement of the supply cut, MOL shares on the Budapest Stock Exchange fell by 5%.

The Russian pipeline operator Transneft said Tuesday that the Ukrainian company UkrTransNafta completely stopped pumping oil through the southern branch of Druzhba, which supplies Hungary, Slovakia and the Czech Republic, on August 4.

Transnet added that the cut is because it did not receive transit fees from Russia due to sanctions imposed on Moscow in the wake of its invasion of Ukraine.

Hungary buys 60% of its oil and 85% of its gas from Russia. EFE


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