European bank has agreed to process a payment for Russian oil transit through Ukraine, Slovak oil refiner Slovnaft said, removing the reason for last week's halt in oil supplies to Central Europe, Reuters reported.

The payment, if confirmed by all parties, would be a step toward restoring oil flows to the Czech Republic after a week of downtime, as well as setting the stage for future transit payments to the region.

Russian pipeline monopoly Transneft said Tuesday that supplies through the Druzhba pipeline to the Czech Republic, Hungary and Slovakia have been suspended since last Thursday, as Western sanctions prevent transit fees from being paid.