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Russian President Vladimir Putin said on Saturday that the state-owned Transneft oil company was investigating the contamination of Russian crude oil supplies pumped across Europe.
Poland, Germany, Ukraine and Slovakia suspended oil imports via the Druzhba pipeline earlier this week, after flows were found to be contaminated. The temporary halt of deliveries sparked a supply crisis affecting refineries up to Germany.
Read moreDirty Russian oil fueling anger in Minsk
The case of contamination:
- The problem was identified last week after an unidentified Russian producer contaminated stocks of crude oil containing large amounts of organic chloride.
- Transneft then confirmed that organic chlorides were being introduced into the Druzhba pipeline at the Samara Transneft private terminal in southwestern Russia.
- A number of countries, including Germany, Poland and Ukraine, interrupted Thursday Russian oil imports via the pipeline.
- The crisis has pushed oil prices to more than $ 75 for the first time this year.
- Russia held talks with Belarus, Ukraine and Poland in Minsk on Friday to discuss measures to be taken to deal with the consequences.
- Moscow has announced plans to restore clean oil flows via the pipeline by two weeks ago.
Investigation in progress
Putin said the government would consider conducting a wider investigation if the Transneft inquiry did not go far enough.
"First of all, of course, it is necessary to carry out an investigation at the level of Transneft itself and to identify its place of origin, for what reasons, for what it was, etc. This investigation is ongoing, "Putin said.
"If the internal investigation of the company is not enough, I do not rule out that we will carry out a more thorough investigation with the help of agencies and specialists in the business. ;law application."
The Interfax news agency reported that Transneft had stated that the contamination could be deliberate and opened criminal proceedings.
Analyst Mike Lynch told the AFP news agency that the deal was "pretty strange".
"This has caused some nervousness in the markets, but it seems that the situation can be resolved quickly," he said.
Read more: What are the issues for Russia in Venezuela?
Cut supplies: The suspension of flows along the Druzhba pipeline cut an important supply route for refineries in Poland, Germany and elsewhere. Some refiners have found alternatives, but analysts believe that other routes can not offset the shortfall. Meanwhile, Russia has had to find a way to divert a massive amount of oil supposedly heading west across Europe.
Crucial pipeline: Russia is the second largest exporter of crude oil. The Druzhba pipeline, which can carry 1 million barrels a day, is one of the main ways to get oil to other European countries. The pipeline crosses Belarus, where it divides in two, one branch going north into Poland and Germany and the other serving the Czech Republic, Hungary and Slovakia further south.
What made the oil dirty? Organic chlorides are commonly used to increase the production of oil, but they must be separated before delivery. Once refined, they turn into hydrochloric acid that can destroy refinery equipment.
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