Hungary, Serbia to build new oil pipeline link

In a bid to improve energy security, Hungary and Serbia will build a 128km oil pipeline between Algyő in Hungary and Novi Sad (Újvidek) in Serbia, the minister of foreign affairs and trade said in Belgrade, after a meeting of the mixed economic committee on Wednesday.

A contract on the planned project to be implemented by Hungary’s state oil company MOL and Serbia’s Transnafta will be signed at the summit meeting of the two countries’ governments on June 20, Péter Szijjártó told a press conference, according to the foreign ministry’s statement.

At Wednesday’s meeting it was agreed that Hungarian energy company MVM and Serbia’s gas supplier Srbijagas will set up a joint regional natural gas trading company and Hungary will store 100 million cubic metres of gas on behalf of Serbia, Szijjártó said.

Hungarian companies will also participate in upgrading Serbia’s electricity network, he said, adding that work was going according to schedule on doubling the capacity of the interconnector linking the two countries’ electricity networks. “There is no energy security for Hungary without Serbia, as there is no energy security in Serbia without Hungary,” said Szijjártó .

The minister said the committee also made an important decision on a large-scale infrastructure development project to cut the long waiting times at the border of two countries by building a modern border-crossing station between Röszke and Horgos, Szijjártó said, noting the importance of ensuring free flows between countries that have six billion euros-worth of trade turnover and close relations between their people.

“This is about one of Eurogape’s busiest border crossing stations, and we would like to build one of Europe’s top-notch such facilities there.” Further measures to speed up cross-border traffic include restructuring the Hercegszanto crossing to allow cargo transport there and allowing buses to cross at the Ásotthalom border station. The opening hours at the border stations will be extended, Szijjártó said.

Regarding the war in Ukraine, Szijjártó said that neither Serbia nor Hungary was responsible for the outbreak of the war, yet both countries were paying a high price for it. He called it “bad news” that the world was heading towards the formation of blocs.

“Central Europe must live up to its task of being successful in this very difficult environment, and this can only be achieved through reliable and predictable partnerships,” Szijjártó said, noting that Hungary and Serbia enjoyed such a partnership.

“Hungary and Serbia both support peace and the two countries are in agreement that what is most important is to save lives, which is possible only if there is peace,” the foreign minister said.

Answering a question, Szijjártó highlighted the importance for the Hungarian government of security cooperation with Serbia in the context of ongoing illegal migration which he said posed a serious challenge to both countries.

He noted that Hungary last year had to block 271,000 illegal entry attempts at its southern border. “We want to strengthen cooperation with Serbia in efforts to move the EU’s external line of defence further south,” Szijjártó said, noting the participation of Hungarian police forces in patrolling the Serbian-North Macedonia border together with Serbian police officers and border guards.