Hungary will channel Russian oil to Serbia

Hungary and Serbia have agreed to build a pipeline to supply Serbia with Urals-type crude oil through the Druzhba (Friendship) oil pipeline, as cargo shipments to Belgrade via Croatia fall under European Union sanctions, Hungary’s government said today.

Last week the European Union agreed to impose new restrictions on Russia over its war in Ukraine, which include an oil price cap on shipments of Russian crude by sea to third countries. Serbia gets its oil through the JANAF pipeline from Croatia.

“The new oil pipeline will be able to supply Serbia with cheaper Urals crude oil, through its connection to the Druzhba oil pipeline,” Hungarian government spokesman Zoltan Kovacs tweeted.

He added that the supply of oil to Serbia is largely through the pipeline that passes through Croatia “but this is unlikely to be possible in the future due to the sanctions that have been adopted.”

Hungary, which is heavily dependent on Russian oil and gas, has been the most vocal critic of EU sanctions against Russia, saying the measures have driven up energy prices. Budapest backed last week’s sanctions package.

The southern branch of the Druzhba oil pipeline reaches through Ukraine to Hungary, Slovakia and the Czech Republic and has been a primary source of supply for refineries in those three countries for years.

Serbia’s only oil company is NIS, in which Russia’s Gazprom Neft ( SIBN.MM ) and Gazprom ( GAZP.MM ) jointly own a majority stake.

Earlier this month, Hungary also said it would help Serbia, if needed, with natural gas supplies.

Hungary has natural gas reserves to cover its needs for five to six months, Prime Minister Viktor Orban said.

RES-EMP

Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.