The Ukrainian state-owned company Ukrtransnafta stopped pumping oil through the southern branch of the Druzhba pipeline system on August 4. This branch transports crude to Hungary, the Czech Republic and Slovakia. Transneft said it was unable to pay for transit services because of the European Union (EU) sanctions.
The oil coming through the Druzhba pipeline is not subject to EU sanctions. European countries imposed an embargo against the rest of Russia's oil as part of the sixth package of sanctions.
Transneft spokesman and presidential adviser Igor Demin told RIA Novosti that Ukrtransnafta completely stopped pumping through the southern branch of Druzhba at 6:10 on August 4. Transit of oil through Belarus in the direction of Poland and Germany continues. As Demin specified, the Ukrainian company renders services of oil transportation on the condition of 100% prepayment.
"When making a payment for transit through the territory of Ukraine, the funds were returned to the account of PJSC Transneft. Gazprombank, which services payments, notified us that the payment was returned due to the introduction of EU regulations, that is, the seventh package of sanctions. We informed the Russian Ministry of Energy, as well as Russian shippers supplying resources in the direction of these three countries, and Ukrtransnafta that the money is not going through and the payment cannot be made," a Transneft spokesman said.