Ukrtransnafta received 3.5 million euros of compensation for dirty oil for 5 months

From May to September, Ukrtransnafta received 3.5 million euros from Transneft PJSC for reserving the oil transmission system’s capacities due to oil with an increased content of organochlorine compounds entering the Ukrainian section of Druzhba oil pipeline. This was reported by the press service of the company.

This amount is not final, as Transneft continues to reserve the capacities of Ukrtransnafta.

The size of payments is determined within the framework of existing contractual relations and depends on the balance of the low-quality Russian oil in the oil transmission system of Ukraine as of the first day of each month, for which the Russian oil transmission company reserves the capacity of Ukrtransnafta.

Ukrtransnaft also reported that they check the quality of oil coming from Russia daily together with the SGS international Surveyor company and have not recorded repeated cases of contaminated oil entering the Ukrainian section of Druzhba pipeline.

Now Ukrtransnafta is gradually catching up with the under-pumped volumes caused by the suspension of Druzhba pipeline in April-May. In August, Ukrtransnafta provided transit of even larger volumes of oil than planned at the beginning of the month, increasing the volume of oil transmission to the EU by 33.5% compared to July 2019.

Recall that due to organochlorine injected into Druzhba pipeline, Russian oil was refused to be accepted in Slovakia and Hungary, where Ukrtransnafta transports oil. In this regard, the company was forced to suspend transit from April 25 to May 11, 2019, and also from May 17 to May 21, 2019. The stop of oil transmission to the EU countries did not affect the transit volumes of Russian oil in April, but significantly affected the volumes in May.

Tags: Naftogaz, contracts, oil, legislation, Ukrtransnafta, добыча нефти, RF, export, import

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