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Sources say that Transneft, a Russian oil pipeline company, has cut off its intake of pipeline oil after a drone attack on a key pumping station.

Two sources with knowledge of the situation on Tuesday said that Russia's monopoly oil pipeline Transneft has cut crude intake by around 250,000 barrels every day following a drone attack from Ukraine on a pumping station servicing major oil hubs and ports on Monday.

This reduction in oil exports could worsen Russia's problems, as it struggles with lower shipments of its key products to India and Turkey due to stricter Western sanctions designed to force Moscow to reach a peace agreement with Ukraine.

Since the end of January, Russia has also suspended its remaining oil exports to Europe. These include refineries in Hungary or Slovakia.

According to Ukrainian security officials and industry sources, Ukrainian drones attacked the Kaleykino Station in the Volga Region of Tatarstan on Monday. The station serves the Druzhba Pipeline, which carries Moscow's crude oil to Eastern Europe and Russia's western ports.

One source said that the Transneft cut mainly affected shipments of Tatarstan's Tatneft producer.

Key Pumping Station

The drone attack caused an fire at the station. It has the capacity to pump around 1 million barrels a day. It is located near Almetyevsk, in Tatarstan. This is more than 1,200 kilometers (750 miles), from the Russia-Ukraine frontier.

Kaleykino, a major oil transportation hub in West Siberia, is located at this location. It was built in the 1970s and is an important junction for mixing and pumping oil.

Kaleykino is a major hub for supplying western ports, including Novorossiisk, Primorsk and the Druzhba Pipeline. It is an important hub to deliver fuels to Russian refineries.

Sources in the oil industry said that the extent of damage is still being assessed. However, if it is severe, this could have a negative impact on Russian oil exports including volume and quality.

One of the witnesses said that two?50,000 metric-ton tanks caught fire in the attack.

Transneft & Tatneft didn't?respond immediately to requests for comment.

Almetyevsk's administration claimed that Russian air defences shot down drones in the district. The debris ignited a fire within an industrial area. The report did not mention any damage to the Druzhba Pipeline or provide details.

The attack, which is 'the latest Ukrainian strike along the route', could increase tensions between Ukraine, Hungary, and Slovakia. Both countries have accused Kyiv for trying to "block oil flow through the pipeline" to their refineries.

Since January 27, Ukraine has suspended the shipment of Russian oil into Hungary and Slovakia. This is after a Russian drone attack on pipeline equipment was reported by Kyiv.

Hungary on Monday blocked EU sanctions against Moscow and a large loan for Kyiv, straining Europe’s pro-Ukrainian agreement on the eve the fourth anniversary of the war. Mark Potter edited this article.

(source: Reuters)