Hungary may receive Russian oil via Croatia, but there’s a huge problem
A legal loophole could allow Russian oil to come to Hungary via Croatia. However, that amount will not be able to serve two refineries.
Russian oil may come to Hungary via Croatia
Ukraine may eventually block all Russian oil supplies through the Friendship II pipeline. In preparation for this, three Russian oil companies have already started to divert their supplies to seaports, as Daily News Hungary reported.
According to Portfolio, a “legal loophole” can be exploited for these to reach Hungary and Slovakia via the Adriatic pipeline from Croatia. However, there is a problem: the pipeline has a much more limited capacity than the two countries need.
Tamás Pletser, an analyst at Erste Befektetési Plc., told RTL News that “if the supply through the Friendship pipeline stops, it means that in the short term, the MOL Group will be in a difficult situation, because the Adriatic pipeline can supply oil from the sea, but it cannot fully meet the demand of the company’s two refineries”.
According to the Hungarian News Agency (MTI), Slovakia said on Friday it had proposed a technical solution to Ukraine to restore oil supplies to refineries in Slovakia and Hungary, following warnings that a partial shutdown could lead to fuel shortages as early as early September.
As we reported, a Ukrainian sanction that came into force at the end of June has halted Russian Lukoil’s oil supplies to MOL via Ukraine, as the Russian company cannot lease the Ukrainian pipeline network for transit.
Read also:
- Reuters informers: Ukraine may cease oil transit to Hungary, Slovakia in August
- Bulgaria offers to help Hungary manage difficulties caused by Ukraine oil transit ban
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