Ukraine and Russia Have Agreed on 10-Year Oil Transit Agreement

Ukrainian oil transit company “Ukrtransnafta” and Russian “Transneft” have signed a 10-year agreement guaranteeing oil transit through Ukrainian pipelines for at least the next decade. This agreement means the resumption of oil transit after its suspension in April 2019 by Russia, in response to claims of contamination by European buyers.

This contamination case has resulted in 4 arrests and 13 additional suspects in Russia, which alleges that the contamination was done intentionally.

Gas transit talks remain under discussion, with the current contract set to expire on January 1. A key Russian demand for a new contract is that Ukraine drop its $2.6 billion award after winning a case against Russian oil giant Gazprom at a Stockholm arbitration court in 2017.

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