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22 November 2022, 11:47 AM

Ukraine is to raise Russian oil transit fee through the Druzhba pipeline

Ukraine plans to raise the transit fee for Russian oil transiting through the Druzhba pipeline, due to Russian attacks on the Ukrainian energy system, the Bloomberg financial news service reported on Nov. 21.

In an open letter by Ukrainian oil transit operator Ukrtransnafta to its Russian counterpart, Transneft, the Ukrainian pipeline operator writes:

"The continuing destruction of the Ukrainian energy infrastructure has led to a significant shortage of electricity, an increase in its costs, a shortage of fuel, spare parts."

The letter explains that the cost of organizing safe work conditions and protecting energy facilities has increased, as well.

The Ukrainian company announced the transit fee on flows to Hungary and Slovakia will rise up to EUR 13.60. As for now, the fee is EUR 11.50. The tariff will be increased by about 15%, so the annual increase will be 51%, also taking into account a previous rise of the transit tariff in April earlier this year.

Transneft has already confirmed to the Russian media that it received the letter and is studying it. It is also going to discuss this matter with the Kremlin.

Bloomberg noted the Russian crude shipments to Europe were temporarily suspended on Nov. 15 after the pipelines’ power supply was knocked out due to a Russian missile strike. On that day Russia has launched up to 100 missiles, mostly targeting Ukraine’s energy infrastructure.

Following these events, Hungarian Prime Minister Viktor Orban has convened that country’s defense council to discuss problems with Russian oil pipeline flows, and a rogue missile strike in Poland.

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