Russian Transneft Disagrees With Siluanov's Claims of Company Failing Druzhba Obligations

Russian oil transport giant Transneft disagrees with Finance Minister Anton Siluanov's statement claiming that the company had failed to fulfill its obligations to deliver standard-compliant oil via the Druzhba pipeline, Transneft spokesman Igor Demin said on Wednesday

MOSCOW (Pakistan Point News / Sputnik - 29th May, 2019) Russian oil transport giant Transneft disagrees with Finance Minister Anton Siluanov's statement claiming that the company had failed to fulfill its obligations to deliver standard-compliant oil via the Druzhba pipeline, Transneft spokesman Igor Demin said on Wednesday.

Earlier in the day, Siluanov told reporters that the government should not reduce Transneft's dividend payments over the Druzhba situation. According to the minister, it would be wrong to let the state compensate Transneft for the company's failure to meet its contractual obligations regarding oil deliveries through the pipeline.

"The statement of First Deputy Prime Minister Siluanov is a simplified assessment of the situation. A crime was committed and an investigation is underway. Within the investigation Transneft was recognized as an injured party," Demin said, adding that Siluanov's remarks had been influenced by information obtained from Transneft's adversaries.

A problem with the quality of oil going through Transneft's Druzhba pipeline from Russia to Belarus was uncovered in April. Poland and Ukraine suspended oil transit after detecting increased concentrations of organic chlorides in crude oil coming through the pipeline. Four people have been detained in connection with a Russian investigation into the incident.

The transmission system of Belarus forks into two streams one going through Poland to Germany and the other through Ukraine to Slovakia, Hungary and the Czech Republic. Transit of uncontaminated oil via Druzhba have already been restored in Belarus, Ukraine and Slovakia.

While Russian Deputy Prime Minister Dmitry Kozak has said that it will be Transneft that will compensate for the losses inflicted by the situation, Russian Economic Development Minister Maxim Oreshkin has said it is too early to discuss reviewing Transneft's dividend payments since the total damage has yet to be determined.

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