Hungary pays Transit Fees to Continue Flows of Russian Oil
Officials deemed it "a swift solution," but one that won't last forever...
Oil flow from Russia has been halted en route to parts of Europe and should resume after MOL, a Hungarian group, paid transit fees owed to Ukraine. The fix is said to just be a temporary solution to the latest Russian disruption. The announcement of Transneft planning to resume oil pumping through Druzhba was made public today.
Transneft has said that Russian oil pipeline flows have been previously suspended to parts of central Europe since last week due to the Western sanctions preventing payment of transit fees. The suspension drove up oil prices for a bit of time which just added to the already sky-high oil prices. Today, oil prices fell back to normal — yet still high — prices as the Druzhba line opened back up.
Countries in central Europe such as Hungary are very reliant on Russian energy. Due to this, Hungary has criticized the EU for the sanctions imposed against Russia. MOL said that it had transferred the owed transit fee for the use of the Ukrainian section of the pipeline. Officials deemed it "a swift solution.”
When asked why the halt occurred in the first place, a statement released read, "due to technical issues emerging on the banking front.”