EU Loan to Ukraine Blocked Over Russian Oil Dispute

Hungary’s Foreign Minister Peter Szijjarto stated on Friday that the country will not comply with EU demands for Ukraine to resume oil shipments via the Druzhba pipeline. The halt in oil flows from Ukraine began on January 27, following a reported Russian drone attack on pipeline infrastructure. Hungary and Slovakia, which rely on the Druzhba pipeline for their oil supply, have been seeking alternative arrangements.

The Hungarian government has announced plans to release approximately 1.8 million barrels of crude oil from its strategic reserves to address shortfalls. However, Croatia’s JANAF pipeline operator stated that this measure is not necessary, as oil transport via the pipeline continues uninterrupted and without delays.

MOL Group, Hungary’s oil company, has also clarified that it will have priority access to released crude oil reserves until April 15. The Hungarian government decree outlines the terms of the reserve release, with MOL required to return the freed reserves by August 24.

According to data from the Hungarian Hydrocarbon Stockpiling Association, the country had sufficient crude oil and petroleum product reserves to cover 96 days at the end of January. As the situation continues to unfold, both Hungary and Slovakia are working to secure alternative oil supplies, with MOL ordering tankers to deliver oil from various countries to its refineries in Hungary and Slovakia.

Source: Al Jazeera