Work on Rosneft’s Komsomolsk refinery pipeline has come to a standstill after Transneft pulled out of the project.
Transneft, which has the monolopoly on Russian pipelines, has withdrawn from building the line in the wake of a freeze on transportation tariffs for the country’s state-regulated energy providers.
The price freeze, due to take effect next year, means Transneft will be forced to slice its investment plans as the Russian Government looks to bring down inflation.
The companies had agreed to build the supply spur to the Komsomolsk refinery last year, supplying the plant directly rather than using rail.