RT reported that Hungary and Serbia decided to speed up the construction of a new oil pipeline to supply crude oil from Russia to Serbia through the Druzhba pipeline system.
Hungarian Foreign Minister Peter Szijjarto said the decision was made following the latest US sanctions on Russian oil and Ukraine's refusal to transit Russian gas to European countries.
The agreement to build a new pipeline was signed by Hungary and Serbia in October 2022, with the aim of transporting Russian Urals crude oil to Serbia via the Druzhba system - one of the longest oil pipeline networks in the world, stretching about 4,000 km from Russia to refineries in the Czech Republic, Germany, Hungary, Poland and Slovakia.
In a Facebook post after a phone call with Serbian Energy Minister Dubravka Djedovic Handanovic, Mr. Szijjarto stressed that recent energy crises, largely due to political factors, have demonstrated the importance of close cooperation between countries to ensure energy security.
“Learning from the experience of the past weeks, we have agreed to accelerate joint investments in the energy and energy security sectors, including creating a new electricity connection between the two countries and building the first joint oil pipeline,” Mr. Szijjarto said.
The Hungarian Foreign Minister described Serbia as a strategic partner, asserting that Hungary's energy security is inseparable from Serbia's and vice versa. He also criticized the sanctions imposed by political powers, saying they cause serious difficulties and do not take into account the interests of allies.
Serbia, which relies heavily on Russian oil supplies via Croatia, has been hit hard by Western sanctions against Russia. From 2022, the sanctions have included a ban on Russian oil shipments by sea and a price cap of $60 per barrel for other grades of oil.
The situation has been further aggravated by the latest US sanctions, which target two major Russian oil producers – Gazprom Neft and Surgutneftegaz – along with their subsidiaries, including Naftna industrija Srbije (NIS), which supplies Russian oil to Serbia and neighboring countries. Related insurance providers and more than 30 oil service companies, along with more than 180 vessels transporting Russian oil, have also been blacklisted.
Mr. Szijjarto warned that these extended sanctions could lead to a significant increase in fuel prices in Hungary and other countries in the region. In this context, the construction of the new pipeline is not only an important step to ensure stable oil supplies, but also a strategic solution to mitigate the negative impact of international sanctions.
The new pipeline project is expected to strengthen energy cooperation between Hungary and Serbia, while strengthening the energy self-sufficiency of both countries in the face of global geopolitical fluctuations.