Ukraine has agreed to work with the European Union to restart the flow of Russian oil to Hungary and Slovakia via the Druzhba pipeline, EU senior officials said Tuesday.
Kyiv agreed to restore flows to the two EU member states after the European Council and Commission told Ukraine the resumption would pave the way for the finalization of a EUR 90-billion ($103.83 billion) loan and a fresh package of sanctions against Russia, according to an exchange of official letters published online.
Bratislava and Budapest have accused Kyiv of holding Druzhba flows hostage. Kyiv has insisted the pipeline has sustained fresh damage from Russian attacks. Moscow has denied any role in the stoppage and expressed readiness to restart pumping.
“Following the renewed Russian strikes on 27 January on the Druzhba pipeline, leading to the interruption of crude oil supplies to Hungary and Slovakia, the president of the European Commission and the president of the European Council have engaged in intense discussions with member states and Ukraine at all levels to restore the flow of oil to Hungary and Slovakia”, said a joint statement Tuesday from Commission President Ursula von der Leyen and Council President António Costa.
“The EU has offered Ukraine technical support and funding. The Ukrainians have welcomed and accepted this offer. European experts are available immediately”.
The statement indicated the Commission and Council were also negotiating alternative routes with Ukraine to import non-Russian oil into Central and Eastern Europe.
Hungary Holdout
Amid supply uncertainty from the Middle East war, von der Leyen and Costa wrote Monday to President Volodymyr Zelenskyy on the urgency of restoring Druzhba flows to Hungary and Slovakia.
“Hungary has explicitly informed us that they are currently not in a position to agree with the proposed revision of the Multi-Annual Financial Framework that underpins the [EUR] 90 billion Ukraine Support Loan nor to adopt the 20th package of economic sanctions against Russia”, read the letter, as shared online by the Council. “You will recall that unanimity is required for both proposals.
“In this context, we would reiterate the offer, made during our visit and in our phone calls, that the EU would swiftly provide all the necessary technical support in order to be able to subsequently conduct the repair work on the Druzhba pipeline. This could be paid for by European funds.
“We are fully aware that amid Russia’s ongoing aggression and its relentless attacks on Ukraine’s critical infrastructure, the Russian Federation may inflict further damage on the pipeline. However, in the current context of high volatility of energy markets, the resumption of the transit of the oil through the territory of Ukraine becomes of greater importance to preserve market stability.
“This is also in line with Ukraine’s existing contractual obligations as well as with the derogation provided for Hungary and Slovakia from the general EU ban on the import of Russian oil”.
The resumption of flows “would allow to move forward in a timely manner with the EU Ukraine Support Loan funding for your own macro-economic stability and for the purchase of defense equipment, as well as the final adoption of the 20th package of sanctions”, the letter added.
Agreeing to the offer, Zelenskyy said he expects the first disbursement from the loan at the start of April.
In his letter of reply, also published by the Council, Zelenskyy added the new sanctions package “is extremely important for fostering peace process”.
Druzhba ‘Damage’
Zelenskyy said repairs are already underway, insisting the halt is due to Russian attacks on the pipeline and surrounding infrastructure and expressing support for the realization of the EU’s goal to phase out Russian oil by 2027.
“During the winter period, attacks on Ukraine’s energy infrastructure temporarily affected the operation of several pumping facilities along the route”, Zelenskyy wrote back. “Despite these challenges, Ukraine ensured the continuity of crude oil transportation through responsible coordination with counterparts and necessary operational adjustments. These measures were implemented quietly and responsibly, demonstrating Ukraine’s commitment to remaining a reliable energy partner.
“The current damage is more serious because the main oil pipeline operates as a single continuous system, and the complete shutdown of the key pumping station disrupts it. Without the functioning of the Brody pumping station, it is technically impossible to maintain the requested operating pressure in the pipeline system and ensure the safe transit of oil”.
Ukraine has undertaken a “bypass solution” and expects to restore “technical capability”, which would allow oil to flow again, in about one and a half months, Zelenskyy assured.
Zelenskyy added Ukraine is considering building an underground storage infrastructure as a longer-term solution for the damaged oil tank.
“But let me also underline that, despite massive strikes targeting oil pipeline infrastructure, Ukraine remains capable to offer alternative routes for the transit of non-Russian crude oil to the countries of Central and Eastern Europe”, Zelenskyy said.
Russian Oil ‘Ready’
In an interview with Russian news agency TASS published March 11, Russian Ambassador to Slovakia Sergey Andreyev insisted, “Oil supplies to Slovakia via Druzhba are blocked by the Ukrainian authorities. Russia has nothing to do with this situation, our position is known to the Slovak authorities: Russia is ready to fulfill its obligations and continue supplies through the pipeline when it is unblocked”.
Andreyev also warned, “There are no alternative oil supply routes for Slovakia that would be comparable to Druzhba by profitability and efficiency”.
Earlier this month Hungarian Foreign Affairs and Trade Minister Peter Szijjarto visited the Kremlin to “obtain assurances” that Russian fossil fuels continue flowing to Hungary, while blaming Ukraine’s “political” blockade for the Druzhba oil stoppage, according to the Kremlin’s transcript of Szijjarto’s exchange with Russian President Vladimir Putin.
Putin replied, “Whatever depends on us – we have always fulfilled all our obligations – and, of course, we intend and are prepared to continue doing so”.
“Not everything depends on us, but, I reiterate, we have always been reliable suppliers”, Putin added, as per the transcript dated March 4.
To contact the author, email jov.onsat@rigzone.com
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