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Compensation for tainted Russian oil to be decided company by company

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Christian Fernsby ▼ | June 26, 2019
Compensation for the tainted Russian oil supplied to Europe earlier this year via the Druzhba pipeline and in cargoes will be decided company by company, Russia's Deputy Energy Minister Pavel Sorokin told Reuters.
Russian businesses   Druzhba
Russia halted some oil supplies in April after excessive levels of organic chloride were found in the million barrel-per-day Druzhba pipeline that crosses Belarus and serves customers as far west as Germany.

The Baltic sea port of Ust-Luga was also contaminated.

Druzhba splits into the two routes in Belarus. Russia has managed to restore some supplies of clean oil to Poland via Druzhba's northern leg and to Ukraine, the Czech Republic, Hungary and Slovakia in the south.

Officials have said that it will compensate oil producers for their losses from the tainted oil, while oil firms in turn should talk to their customers about losses further down the supply chain.

The state oil pipeline monopoly Transneft is to pay compensation rather than the state, they said.