Transneft Paid Ukraine $3.3mn so Far to Compensate for Dirty Oil

Ukrainian pipeline operator Ukrtransnafta said on Tuesday that Russian oil pipeline monopoly Transneft has paid it 2.9 million euros ($3.25 million) so far as compensation for contaminated oil that entered the Ukrainian pipeline network.

This is an increase from 2.3 million euros previously paid. 

On July 31, UkrTransNafta said that it had already received more than 2.3 million euros over the Druzhba incident. On Tuesday, the Ukrainian company said that it had got additional 600,000 euros in compensation.

“As for the moment, UkrTransNafta received part of the compensation from Transneft in the amount of more than 2.9 million euros over the oil with exceess presence of organic chlorides that entered Ukraine’s stretch of the Druzhba pipeline,” the company said in a statement.

According to the pipeline operator, the received funds allowed the company to cover the costs of the suspended oil transit in April-May.

The delivery of Russian oil to Eastern Europe through the Druzhba pipeline was temporarily halted in late April after it was discovered that the fuel was contaminated with organic chlorides. Clean oil supplies were restored in full on July 1.

Russia’s official explanation for the tainted oil was that it was poured into the pipeline by a group of individuals who wanted to cover up their theft of pure oil. Several people are currently being investigated as part of the case.