Damaged Druzhba Pipeline Carried Ukrainian Crude to EU
Industry sources say the Druzhba pipeline carried Ukrainian oil before a Russian strike in January. The halt impacts revenues for Kyiv and supplies to the EU.
The Druzhba pipeline was utilized to export oil from Ukraine in addition to much larger volumes of crude from Russia before a strike one month ago halted supplies, according to industry sources. This previously unreported use of the pipeline to transport Ukrainian oil to European Union members Hungary and Slovakia has come to light following the suspension of shipments on January 27. Kyiv has attributed the shutdown to a Russian attack on pumping installations located in western Ukraine, an event that has triggered diplomatic disputes within the EU and efforts by Budapest to resist further sanctions.
The suspension of these exports deprives the Ukrainian government of a critical source of revenue necessary to address its budget deficit. If the outage is sustained, it may force a total halt to domestic oil production. Since the invasion began four years ago, the Ukrainian government has classified most data regarding oil processing and exports to protect national security.
