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How Soviet-built Druzhba pipeline still gives Kremlin leverage in Europe, keeps war cash flowing

global.espreso.tv
Thu, 21 Aug 2025 16:32:00 +0300
How Soviet-built Druzhba pipeline still gives Kremlin leverage in Europe, keeps war cash flowing
Contents 1. Building Druzhba: The Soviet-era oil lifeline 2. Use after USSR collapse 3. Disputes with Hungary over Druzhba 4. Ukrainian strikes and restoration of Druzhba 5. Geopolitical significance: expert opinions This week, Ukraine’s Magyar Birds unit, specializing in aerial reconnaissance and drone warfare, struck key facilities of the Druzhba oil pipeline in Russia, forcing a temporary halt in oil supplies to Hungary and Slovakia. Although the flow was restored within a day or two, this incident highlighted the pipeline's enduring geopolitical significance as an instrument of Russian influence in Europe, a source of revenue for the Kremlin, and a potential target in a full-scale war.Druzhba continues to be a symbol of some European countries’ dependence on Russian energy resources, even despite EU sanctions. Espreso explains more.Building Druzhba: The Soviet-era oil lifelineThe Druzhba oil pipeline was conceived by the Soviet Union in the late 1950s as part of its strategy to bind the Warsaw Pact through economic integration. In 1958–59, the Council for Mutual Economic Assistance approved its construction to carry oil from the Volga-Ural fields to Eastern Europe — Poland, Czechoslovakia, Hungary, and East Germany. The project had a dual purpose: to fuel the industrial growth of the socialist bloc and to tighten Moscow’s grip on its allies. It also gave the Kremlin a lucrative channel for exporting oil to Western Europe in exchange for hard currency.Construction began in December 1960 and continued until 1964. Each participant was responsible for their own section: pipes were manufactured in the USSR and Poland, fittings (pipe connection elements) in Czechoslovakia.Stretching some 4,000 kilometers (over 600 of them across Ukraine) the Druzhba pipeline split into two main arteries: a northern branch through Belarus to Poland and Germany, and a southern branch through Ukraine to Hungary, Slovakia, and the Czech Republic. Despite U.S. resistance, including a 1963 embargo aimed at halting the project, Druzhba went on to become the world’s largest oil pipeline of its time, delivering up to 18 million tons of oil annually to Czechoslovakia until t 1989.Use after USSR collapseAfter the Soviet Union collapsed in 1991, the Druzhba pipeline remained a major artery for Russian oil exports to Europe, but now ran through newly independent states — Russia, Belarus, and Ukraine. Transit countries began demanding fair tariffs for pumping, sparking recurring disputes.Russia continued to rely on Druzhba to supply Central Europe, but its dependence on Ukraine as a transit hub grew increasingly risky, especially after the 2006–2009 gas crises, when tariff clashes triggered supply interruptions.For Ukraine, Druzhba became both a vital source of transit revenue (about $720 million annually before Nord Stream was built) and a constant point of friction. Between 2007 and 2010, tariff disputes flared regularly. In 2019, the pipeline faced its worst crisis when ‘dirty oil’ contaminated with organic chlorides was pumped through, forcing a two-week shutdown. Ukrainian officials suspected deliberate sabotage by Russia, which left European consumers facing heavy losses.Disputes with Hungary over DruzhbaIn recent years, the Druzhba oil pipeline has remained at the center of geopolitical battles. Ukraine has pushed to diversify oil routes and cut Europe’s reliance on Russia — a goal that became urgent after the full-scale war.Despite EU sanctions on Russian energy, Druzhba kept operating. The northern branch through Belarus supplied Poland and Germany, while the southern branch through Ukraine continued feeding Hungary, Slovakia, and the Czech Republic. Poland and Germany stopped using Russian oil by mid-2023 after sanctions allowed contracts to be severed. Exemptions, however, kept the southern route open for Hungary, Slovakia, and the Czech Republic, whose landlocked geography makes them more dependent. Even so, Prague managed to secure alternatives, and by March–April this year the Czechs also abandoned Russian oil.Instead, Budapest has blocked tougher EU sanctions on Russian oil, insisting it needs cheap supplies and accusing Ukraine of “attacking its sovereignty” over transit. Hungarian Foreign Minister Péter Szijjártó repeatedly stresses that Druzhba is Hungary’s lifeline and has even threatened to cut electricity sales to Ukraine if the pipeline stops.The biggest beneficiary is the Hungarian company MOL, which controls refineries in Hungary and Slovakia and profits heavily from Russian crude via Druzhba. MOL claims it will retool its refineries by the end of 2026 to handle both Russian and non-Russian oil, but the deadline has already been pushed back several times. Meanwhile, Hungary could secure alternatives through the Croatian terminal at Omisalj and the Adria pipeline — yet it has avoided striking the necessary deals.At the same time, transit through Ukraine provides Kyiv with some revenue — but it pours billions into Russia’s budget. Serhiy Makohon, former head of Ukraine’s Gas Transmission System Operator, noted that Ukraine moved about 14 million tons of Russian oil to Europe via Druzhba last year. That volume delivered around $6 billion to Moscow, while Ukrtransnafta, Ukraine’s state-owned pipeline operator, earned only $240 million in transit fees — nearly 25 times less than Russia.Ukrainian strikes and restoration of DruzhbaAccording to the Ukrainian General Staff, on the night of August 18, units of Ukraine's Unmanned Systems Forces, in cooperation with other components of the Defense Forces, struck the Nikolskoye oil pumping station (Tambov region, Russia)."As a result of the strike, a fire broke out at the facility. Oil pumping through the Druzhba main oil pipeline has been completely stopped. The Nikolskoye oil pumping station is part of the economic infrastructure of the Russian Federation and is involved in supplying the occupying forces of the Russian aggressor. The Ukrainian Defense Forces are working to reduce the military and economic potential of the Russian Federation with the aim of completely stopping the armed aggression against Ukraine. To be continued..." the General Staff wrote.Later, the commander of the Unmanned Systems Forces, Robert Magyar Brovdi (an ethnic Hungarian from Zakarpattia and a critic of Prime Minister Orbán), confirmed the involvement of the Magyar Birds unit in the operation.“The Druzhba oil pipeline is taking a break. Full stop of oil pumping for an indefinite period. Greetings from the USF Birds. The Nikolskoye pumping station (Tambov region, Russia) has been deflowered by the Birds of the 14th Regiment of the Ukrainian Armed Forces’ Unmanned Systems Force,” he wrote.Prior to this, on the night of August 13, a strike was carried out on the Unecha oil pumping station in the Bryansk region, which is important for supplying the Russian army as it serves two oil pipelines. As a result, these two strikes caused a complete halt in supplies to Hungary and Slovakia.Hungary reacted sharply, calling it an “unacceptable” way to “drag Hungarians into the war” in Ukraine, but Kyiv responded simply: “Contact Moscow.”“It is Russia, not Ukraine, who began this war and refuses to end it. Hungary has been told for years that Moscow is an unreliable partner. Despite this, Hungary has made every effort to maintain its reliance on Russia. Even after the full-scale war began. You can now send your complaints—and threats—to your friends in Moscow,” wrote Ukrainian Foreign Minister Andrii Sybiha.Notably, in 2024, Ukraine imported 2.14 TWh of electricity from Hungary — almost 40% of its total needs. More than half of Ukraine’s gas imports also flowed through Hungary, amounting to 1.65 billion cubic meters as of 2025. In other words, Hungary has become a critical link in Ukraine’s energy security.By the evening of August 19, Russia had repaired the damaged pipeline and resumed oil supplies, according to Reuters.“Ukraine has stepped up attacks on Russia's energy infrastructure, a key conduit for generating money for Kremlin's war efforts, with oil and gas sales accounting for a quarter of Russia's total state budget proceeds,” the outlet noted.Geopolitical significance: expert opinions Experts stress that the Druzhba pipeline remains one of Russia’s main tools for bypassing sanctions, funneling billions of dollars annually into the Kremlin’s war machine.For Ukraine, shutting down Druzhba is both a military and strategic priority: it cuts Russian revenues, reduces Europe’s reliance on Moscow, and forces Hungary to accelerate diversification. This fits into Kyiv’s broader campaign — since the start of the year, Ukrainian long-range missile strikes on Russian military and energy targets have inflicted damage estimated at over $74 billion, or 4.11% of Russia’s annual GDP, according to the General Staff of the Ukrainian Armed Forces."Close to 80% of these attacks targeted oil refineries and depots, triggering domestic fuel shortages and impairing Russia’s ability to supply oil products to military hubs closer to the Ukrainian border. However, since the beginning of August, a sequence of Ukrainian and Russian strikes against oil or gas installations suggests the two countries’ targeting has moved well outside the confines of the current battlefield and deep into the Eurasian landmass," writes the Center for European Policy Analysis (CEPA).CEPA analysts point out that recent mutual attacks on energy infrastructure indicate that their goal is more geopolitical than military. Ukraine is gradually strengthening its cooperation with Azerbaijan, and the attacks on pipelines are directly related to this new alliance.In particular, on August 2, after explosions in the Volgograd region, the Central Asia–Center gas pipeline, which Russia's Gazprom had recently been using to access Central Asian markets, was shut down. After that, Russia struck a measuring station on the Trans-Balkan pipeline near the Romanian border. Then it shelled the infrastructure of the Trans-Balkan gas pipeline and the SOCAR (Azerbaijani company) oil depot near Odesa.At the same time, Kyiv and Baku have grown closer amid the repression of Azerbaijanis in Russia. Azerbaijan is already producing crucial ammunition for Ukraine for 122-mm and 155-mm shells (the range of weapons may be expanded). It is also exploring new energy export routes to Europe that bypass Russia; in August, Ukraine’s Naftogaz imported small volumes of Azerbaijani gas. These steps strengthen Ukraine’s position in the Caspian, weaken the Kremlin, and create new export opportunities for Azerbaijan — all against Moscow’s interests. The war over oil and gas pipelines therefore concerns not only current control but also future energy markets.As for Hungary, Prime Minister Orbán is using cheaper Russian oil to counter the EU. In particular, the Center for Energy and Clean Air Research points out that Hungary and Slovakia's dependence on Druzhba in 2024 remained at 87% of consumption, although there are no technical barriers to changing this situation, but there is a lack of political will and agreements on the alternative Adria pipeline.“Both Hungary and Slovakia have exploited the exemption to the EU ban on Russian crude oil and have increased their imports through the Druzhba pipeline by 2% in 2024 compared to levels pre-full-scale invasion of Ukraine. TThe EU must implement legally binding measures to stop the continued flow of Russian crude oil that finances the Kremlin’s invasion of Ukraine,” analysts stress.The EU is currently considering mechanisms to force Hungary and Slovakia to reduce their high consumption of Russian oil. In this regard, the European Commission stated after the shutdown of Druzhba that the recent attack on Russia's energy infrastructure does not pose a threat to the security of energy supplies to the EU. In other words, between the lines, one can read that the EU approves of Ukraine's tactics, which are forcing the Kremlin-friendly governments of Hungary and Slovakia to think more seriously about finding alternatives.On the other hand, as diplomat Oleksandr Khara said on Espreso TV, if Ukraine completely blocks the transit of Russian oil to Hungary, then there will be more blocking of EU decisions related to Ukraine from Budapest. Therefore, he believes that it is not worth “spoiling the relations” with the Hungarians.“I think the most important point here is not to upset Hungary so much that it breaks the general consensus of Europeans in literally every decision,” the expert noted.
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