Hungary to import Russian oil through Druzhba pipeline MOL Group secures new deal

Hungary's MOL Group has finalized a deal to import Russian oil through the Druzhba pipeline, marking a significant step in securing the country’s energy needs.

This announcement was made via the Budapest Stock Exchange's website, as per Caliber.Az.

The agreement involves transporting crude oil through Belarus and Ukraine to Hungary and Slovakia. MOL confirms that the new supply arrangements adhere to both EU and Ukrainian sanctions. The company will assume control of the oil volumes from Russia starting in 2024 and will oversee operations at the Belarus-Ukraine border beginning September 9, 2024.

Gabriel Szabo, MOL Group’s Executive Vice President for Downstream, praised the deal, stating, "The new agreement provides a reliable solution for transporting crude oil through the Druzhba pipeline. It is a significant achievement that allows us to continue utilizing the most advanced and efficient processing technologies at our refineries in Hungary and Slovakia, enhancing the security of supply in both countries."

The Druzhba pipeline, a major conduit for Russian oil, consists of two branches: the northern branch, which runs through Belarus, Poland, and Germany, and the southern branch, which traverses Ukraine. Due to sanctions, the northern branch has been inactive since summer 2023. The southern branch continues to supply oil to Hungary, Slovakia, and the Czech Republic, making it a vital route for the region’s energy security.