UPDATE2: Ukraine stops Russia oil pumping to Hungary, Slovakia Aug 4
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MOSCOW/BUDAPEST, Aug 9 (PRIME) -- Ukrainian state company Ukrtransnafta stopped Russian oil pumping through the southern line of the Druzhba pipeline to Hungary, the Czech Republic and Slovakia on August 4, a source with knowledge of the situation told PRIME and spokesman for Russian pipeline monopoly Transneft Igor Dyomin confirmed on Tuesday.
"Ukrtransnafta stopped pumping Russian oil on August 4 in the morning. This is about transit shipments across Ukraine towards Hungary, the Czech Republic and Slovakia," the source said.
Dyomin said that transit was stopped because sanctions prevented Russia from paying for the transit. "Gazprombank that services the payments, notified us that the payment was returned due to the entrance in force of an E.U. rule, or the seventh package of sanctions," he said.
The official added that pumping to Belarus, Poland and Germany continues.
Transneft issued a statement saying that the company is working on alternative ways to pay for the transit and sent an application to Gazprombank to get a permit of the European regulator to continue the payments.
Hungarian oil and gas company MOL confirmed that oil supplies through the Druzhba pipeline were stopped a few days ago and said it had initiated negotiations to take on the transit payment obligations.