Ukrtransnafta receives part of compensation from Russia for contaminated oil

The Ukrainian company got over EUR 2.3 million in compensation, which let it cover the lack of earnings caused by a halt to transit supplies in April.

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State-run Ukrtransnafta, the operator of crude oil transportation in Ukraine, has received part of compensation from Russia's Transneft in the amount of over EUR 2.3 million for the supply of crude oil contaminated with organic chlorides to the Ukrainian sector of the Druzhba oil pipeline.

Ukrtransnafta's press service said that the paid sum let it cover the lack of earnings caused by a halt to transit shipments in April.

Read alsoUkrtransnafta resumes oil transit to Europe

It says the amount of compensation is determined by a supplementary agreement to the current transit agreement and depends on the duration for which Transneft books the Ukrainian oil transportation system where crude oil with a high content of organic chlorides was pumped in.

As UNIAN reported, the transit of oil through the territory of Ukraine was temporarily stopped on the evening of April 25 after European consumers had refused to accept Russian contaminated oil.

On May 11, Ukrtransnafta resumed oil transit to European consumers via the Druzhba main oil pipeline.

However, on May 17, the company had to suspend the transit of Russian oil to the European Union as the European side needed to get prepared for handling contaminated Russian oil for storing it in its tanks. At the beginning of May, Ukrtransnafta's lost revenue from the temporary halt to transit supplies reached UAH 29.2 million, or US$1.17 million.

On May 21, Ukrtransnafta resumed oil transit to European consumers via the Druzhba main oil pipeline.

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