FRESH TAKE:
Ukraine's Oil Transit Plan: Cutting Off Russia's Oil Supplies!
Say goodbye to Russian oil flowing through Ukraine's soil! Kyiv has announced plans to put an end to oil transportation from the east by the end of this year. Here's the scoop!
After more than two years since Russia invaded Ukrainian territory, the nation has served as a crucial pipeline for Russian oil. But that's about to change. Mikhailo Podolyak, an advisor to the Ukrainian President's office, confirmed that Ukraine will no longer facilitate Russian oil transit from January 2025 onwards. The current contracts, valid until January 1, 2025, cannot be terminated unilaterally by Ukraine. Still, come January, Russia's oil days will be numbered in Ukraine.
Instead, Ukraine intends to open its pipelines to Central Asian or Azeri oil. The strategic move is a clear effort to cut down Russia's income derived from selling these resources.
Ukrainian gas transit to Europe from Russia has already ceased, as the contract expired at the end of 2024 and was not renewed. Although it's not directly related to oil, this decision sets a precedent for future energy policies.
The Russian oil pipeline, known as Druzhba, has been a significant passageway for Hungary, Czech Republic, and Slovakia. The pipeline branch leading to Germany has been practically idle due to Western sanctions against Russian oil. However, a twist has occurred, with oil from the Caspian Sea being pumped through the pipeline by Kazakh subsidiaries, allowing Russia to maintain transit revenues without selling its own oil to Europe.
The European Union, being Europe's primary energy market, has been instrumental in putting pressure on Ukraine to maintain the gas transit contract with Russia, despite Ukraine's intentions to halt this practice. The EU aims to facilitate gas transit from Central Asian or Azeri nations to Europe, thus reducing Russia's income derived from these resources.
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