FSUOGM: Russia to set expand oil supplies via southern Druzhba stream in June

Russia plans to increase its supply of Urals crude to the EU via the southern Druzhba pipeline in June by 16% compared to May, Reuters reported on June 7 citing sources. This surge in supply is driven by EU refiners' desire to secure more oil amid concerns over potential disruptions in transit through Ukraine.

Although Russian pipeline oil supplies to Europe are not subject to an EU embargo, the route passes through Ukraine, which has faced ongoing risks of disruptions since Russia's military intervention in the region. The southern branch of the Druzhba pipeline delivers to Hungary, Slovakia and the Czech Republic.

Hungary's MOL, the primary buyer of Urals crude in Hungary and Slovakia, is expected to purchase approximately 900,000 tonnes (200,000 barrels per day) of Urals oil via the Druzhba pipeline in June, marking an increase from the 750,000 tonnes bought in May. The recent escalation of tensions in Ukraine and the destruction of the Kakhovka hydroelectric dam have contributed to the decision to secure additional oil supplies.

If you’d like to read more about the key events shaping the former Soviet Union’s oil and gas sector then please click here for NewsBase’s FSU Oil and Gas Monitor.