Hungary offered to pay for oil transit through Ukraine

The largest Hungarian oil and gas company MOL is negotiating to take over the payment for the transit of Russian oil through Ukraine. This was reported to RIA Novosti by the press service of the company.

"Transportation of crude oil through the Druzhba pipeline has been suspended for several days, according to our information, due to the fact that there were technical problems on the part of banks in connection with the payment for transit by the Russian side," the statement said.

MOL noted that they have enough reserves for several weeks, but at the same time, the company initiated negotiations on assuming obligations to pay for oil transportation.

On the morning of August 9, Transneft reported that Ukrtransnafta had suspended the transit of Russian oil along the southern branch of Druzhba to Hungary, the Czech Republic and Slovakia. The stoppage of transit in the company was explained by the fact that Transneft cannot pay for transit due to EU sanctions, and the Ukrainian company provides services on a 100% prepayment basis.

The Russian company explained that they transferred the payment for pumping through Ukraine, but the funds were returned to the account. Gazprombank, which services payments, notified Transneft that the transfer was returned due to another round of sanctions. Due to the lack of payment for its services, Ukrtransnafta stopped transportation.

The last time Transneft extended the contract with Ukraine for pumping oil was in December 2019, it is valid until January 1, 2030.

The Druzhba oil pipeline is laid through the city of Mozyr in Belarus, where it is divided into northern and southern branches. The northern branch runs through Belarus and Poland to Germany, while the southern branch runs through Ukraine to Slovakia, the Czech Republic and Hungary.

After the start of the Russian special operation in Ukraine , the United States banned the import of oil from RUSSIA. In June, the European Union, as part of the sixth package of sanctions, imposed restrictions on the import of Russian oil by sea. At the same time, the embargo did not affect the supply of gas and Russian crude oil through the Druzhba pipeline. Hungary managed to free itself from the obligation to comply with the European embargo on Russian oil imports, but the relief will be temporary.

President Vladimir Putin said that by imposing restrictions on oil , the West is “stepping on the same rake” as in the case of Russian gas: “The result will be the same - rising prices. Oil prices will skyrocket."