The EU has banned the importation of oil from Russia since the conflict in Ukraine broke out in 2022, but has exempted Hungary, Slovakia, and the Czech Republic.
The exemption is intended to give the three countries time to find alternative oil routes and suppliers. However, many critics argue that Hungary has not made sufficient efforts to find alternative oil sources.
“Why must we give up on Russian oil?” - Reuters quoted Mr. Zsolt Hernadi, CEO of MOL Group, as saying in a recent interview in the city of Esztergom in northern Hungary.
Mr. Hernadi noted, “The management of MOL is the one that decides where to buy oil, not politicians.”
“If we decide to stop importing Russian oil through the Druzhba pipeline, Hungary will only have the Adria pipeline left. Which one is better? One or two? Which option ensures a stable supply?” - MOL's CEO asked.
He also dismissed the possibility of Hungary running out of fuel in September if Ukraine blocks the Russian oil pipeline is not resolved. The MOL leader emphasized that only when MOL speaks out will the issue of oil shortages be a concern.
Oil refineries in Hungary and Slovakia receive oil from Russia through the southern branch of the Druzhba pipeline. However, since July this year, the Russian oil pipeline operated by Lukoil, Russia's largest oil exporter, has been blocked by Ukraine due to Kiev's sanctions on Lukoil.
Hungary and Slovakia have reacted. The EU then proposed that the two Central European countries import oil through the Adria pipeline of Croatian company JANAF.
Accordingly, Hungary and Slovakia will receive oil not from Russia through the Adria pipeline from the Adriatic Sea.
Last week, both Hungary and Slovakia opposed the EU's proposal, accusing Croatia of not investing in related capacity building and questioning the maximum capacity of the Adria pipeline. Croatia has reacted, dismissing the notion that Croatia is not a reliable supplier.
Hungary imports approximately 2 million tons of oil from Lukoil of Russia each year, accounting for about 1/3 of the country's total oil imports.
Due to Ukraine blocking the Russian oil pipeline, the Slovnaft oil refinery in Slovakia, owned by Hungarian MOL Group, is expected to receive less than 40% of the oil needed for production, Slovakia warned in early July.
