Ukrainian Prime Minister Denys Shmyhal informed the country's parliament: "Stopping oil transportation through the Druzhba pipeline would be a direct violation of Ukraine's Energy Charter and the Association Agreement with the EU. Stopping Russian oil transportation through Druzhba is a violation of the association agreement, not a penalty."
Espreso TV quoted Prime Minister Denys Shmyhal as emphasizing that, according to current measures, Russian oil is still transported through this pipeline to European countries such as Hungary and Slovakia.
The termination of Ukraine's oil transit from Russia would also mean that the affected countries would apply to international arbitration to resolve the dispute and lead to the suspension of financial aid from the EU, Ukrainian Prime Minister Denys Shmyhal noted.
The contract for Russian oil transit through Ukraine via the Druzhba pipeline is valid until 2030. According to experts, the termination of the Russian oil transit contract will pose more complex legal challenges than the gas transit agreement that just expired at the end of 2024.
Discussions are expected to continue and the Ukrainian government is likely to look at the legal issues more closely, said Volodymyr Omelchenko, an energy expert at the Razumkov Center in Kiev.
"According to international law, war is a case of force majeure. Ukraine can cancel the contract without any consequences," he said.
It is estimated that Ukraine earns $150-200 million per year from transporting Russian oil via the Druzhba pipeline, while Russia's revenue from the deal exceeds $6 billion.
Last August, Ukraine raised the idea of halting Russian oil shipments but quickly reaffirmed its commitment to existing contracts.
