Ukraine to hike transit fees for Russian oil to EU

Attacks on energy infrastructure are increasing costs for transmission via the Druzhba pipeline, the operator says

Ukraine has announced plans to raise transit fees for Russian oil running through the Druzhba pipeline to the EU, due to higher costs resulting from Russian air and missile strikes targeting the country’s energy infrastructure.

Ukrtransnafta, the operator of Ukraine’s oil pipeline network, is expected to increase tariffs for transporting crude to Hungary and Slovakia by €2.10 per ton to €13.60 ($13.90) starting on January 1, according to a letter from the company seen by Bloomberg. Its Russian counterpart Transneft confirmed to RIA Novosti that it has received a letter and is studying it.

“We are studying these proposals, preparing relevant reports to the Federal Antimonopoly Service and the Energy Ministry,” Transneft spokesman Igor Demin told the agency.

The Ukrainian company has attributed the price hike to the “continued destruction of Ukrainian energy infrastructure” which has resulted in “a significant shortage of electricity, an increase in its costs, a shortage of fuel, spare parts.” 

Ukrainian oil transit fees have already been raised twice this year. The last hike in April reportedly brought the total increase on an annualized basis to 51%. 

READ MORE: Poland wants Russian oil despite EU embargo – Kommersant

Druzhba, one of the longest pipeline networks in the world, carries crude some 4,000km from Russia to refineries in the Czech Republic, Germany, Hungary, Poland and Slovakia.

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