Poland and Germany have suspended imports of Russian oil via a major pipeline, citing poor quality and triggering a rare crisis oversupply from the world’s second-largest crude exporter.
POLAND CUT OFF THE SUPPLY ROUTE
Halting imports from the Druzhba pipeline could trigger legal claims by Western buyers against Russian suppliers, who would in turn seek compensation from Russian pipeline monopoly Transneft, three traders with Western buyers said.
Halting supplies of tainted oil, which can corrode refining units, has pushed some refiners to find other supplies. But alternative routes cannot fully fill the shortfall. The quality issue helped drive oil prices above $75 a barrel for the first time this year on Thursday. Russia said it planned to start pumping clean fuel to Europe through the pipeline on April 29.
Polish pipeline company Pern told Transneft on Wednesday it was suspending purchases, a letter seen by Reuters showed.