MOL Group finds 'sustainable solution' for oil supply to Hungary and Slovakia via southern branch of Druzhba pipeline

MOSCOW. Sept 9 (Interfax) - MOL Group has concluded agreements with crude oil suppliers and pipeline operators to secure the continuous transportation of crude oil on the Druzhba pipeline through Belarus and Ukraine, to Hungary and Slovakia, the company said in a press release.

MOL Group will take over ownership of the affected volumes of crude oil at the Belarus-Ukraine border, effective from 9 September 2024. The updated transportation agreements and the new takeover arrangements of the crude oil fully comply with all relevant sanctions and provisions, including those of the EU and Ukraine, it said.

"The new arrangement provides a sustainable solution for crude oil transportation on the Druzhba pipeline. I consider this a great achievement as it allows for MOL to continue with the most efficient and reliable crude processing technology in refineries in Hungary and Slovakia and ultimately contributes to the security of supply in both countries," said Gabriel Szabo, MOL Group Downstream Executive Vice President.

Hungary and Slovakia stopped receiving pipeline oil from the Russian oil company Lukoil shipped via the Druzhba pipeline in the middle of July due to a transit ban imposed by Ukraine. Kiev tightened sanctions on Lukoil, effectively banning oil transport to Central Europe across Ukraine via the Druzhba pipeline. Lukoil is a major supplier to Hungary, where it accounts for around one third of crude imports, and to Slovakia with 40%-45%.

It has been reported that Tatneft has been supplying oil to refineries in Slovakia and Hungary in place of Lukoil.