The Domino Effect: contaminated oil in the Druzhba oil pipeline – implications of the incident for Russia and Europe

The contamination of the Druzhba pipeline with organic chlorides became the most serious interruption of oil supplies in the 55-year history of oil trade on this key route. While it appears to be a one-off event that has not brought about loss of life or affected the environment, the scale of the incident is such that it has had a profound impact on the whole value chain, from production facilities in Russia to refineries in Central Europe. This comment discusses the potential short-term and long-term implications of this key incident.

By: Vitaly Yermakov