Photo from zn.ua
The crude oil does not comply with quality indicators.
Ukraine's oil pipeline operator JSC Ukrtransnafta suspended transit shipments of Russian crude oil through the Mozyr-Brody main oil pipeline (Druzhba main pipeline) at 21:43 Kyiv time on April 25.
This was a forced decision, the company's press service said on Facebook.
"By taking this decision, the company was guided in particular by an agreement on crude oil transportation services via Ukrainian territory. Under the agreement, Ukrtransnafta has the right to stop the intake of Russian crude oil if the raw materials do not comply with quality indicators. All losses are borne by the side that did not comply with its obligations," the company said in a statement.
The operator also cited two other reasons: the pumping station in Budkovce, Slovakia, refused to accept the poor-quality crude oil from Russia and Hungary's Feneslitke had no free crude oil storage tanks.
As Reuters reported earlier, Poland, Germany and Slovakia suspended imports of Russian oil via a major pipeline, citing poor quality and triggering a rare crisis over supply from the world's second-largest crude exporter.
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Halting imports from the Druzhba pipeline could trigger legal claims by Western buyers against Russian suppliers, who would in turn seek compensation from Russian pipeline monopoly Transneft, three traders with Western buyers said.
The suspension cuts off a major supply route for Polish refineries owned by Poland’s PKN Orlen and Grupa Lotos, as well as plants in Germany owned by Total, Shell, Eni and Rosneft.
The quality problem arose last week when an unknown Russian producer contaminated oil with high levels of organic chloride, which is used to boost oil output but must be separated before shipment as it can destroy refining equipment.
Halting supplies of tainted oil, which can corrode refining units, has pushed some refiners to find other supplies. But alternative routes cannot fully fill the shortfall.
The quality issue helped drive oil prices above $75 a barrel for the first time this year on Thursday.