Russia confirms Ukrtransnafta suspends oil deliveries to Europe

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Russia's Transneft company has confirmed that Ukrtransnafta - a company that supplies oil transportation through Ukraine - has suspended oil deliveries through the southern stream of the Druzhba pipeline to Hungary, the Czech Republic and Slovakia. 

Read more: Hungary disapproves of EU Gas Cuts

Moscow is unable to pay due to EU sanctions, said Igor Demin, Transneft's president's aide, to Sputnik. 

"Indeed, Ukrtransnafta completely stopped delivery oil to Hungary, the Czech Republic and Slovakia along the southern stream of Druzhba on August 4 at 6.10 am. At the same time, transit through Belarus towards Poland and Germany continues," Demin said.

The Ukrainian side, according to Demin, provides services on the condition that prepayment is fulfilled. 

"But when making a payment for transit through the territory of Ukraine, the funds were returned to the account of PJSC Transneft. Gazprombank, which services payments, notified us that the payment was returned due to the EU regulations, that is, the seventh package of sanctions," Transneft’s representative said.

EU energy cuts

In July, Gazprom cut gas supply to the EU by a fifth, at 33 million cubic meters. According to the operator, the decrease in deliveries is due to the withdrawal of another Siemens turbine.

Russian gas giant Gazprom announced last month the suspension of operation of another Siemens gas turbine engine at the Portovaya compressor station due to routine maintenance in accordance with the instructions of the Russian Federal Environmental, Industrial and Nuclear Supervision Service and taking into account the technical condition of the engine.

Gazprom in June had reduced the flow of gas arriving in Germany via Nord Stream 1 by 40%, on the grounds that Siemens turbines being repaired in Canada were missing from the company to be able to operate the gas pipeline at its full capacity.