Hungary, Serbia to build oil pipeline to supply Russian oil
Russian oil supplies via the Druzhba pipeline are not subject to restrictions imposed by the EU
Hungary and Serbia have agreed on the construction of an oil pipeline to ensure transit of Russian oil from the Druzhba pipeline through Hungarian territory to Serbian consumers, Hungarian Minister of Foreign Affairs and Foreign Economic Relations Peter Szijjarto announced at a joint press conference after talks in Belgrade with Serbia’s Minister of Internal and Foreign Trade Tomislav Momirovic.
“A new 128 km oil pipeline will be built between the Hungarian town of Algyo and Novi Sad, Serbia to ensure the security of supplies. The construction contract between MOL and Transnafta will be signed during the Hungarian-Serbian summit scheduled for June 20,” the Hungarian Foreign Minister said. His speech was broadcast on his Facebook page (banned in Russia, owned by Meta, recognized as extremist in Russia).
Until recently, Serbia received Russian oil via the Adriatic oil pipeline from a terminal in the Croatian port of Omisalj on the island of Krk, where sea tankers arrive. However, on December 5, 2022, an embargo on the purchase of Russian oil, including its transportation by sea, came into force in the European Union, and the country had to look for other ways to deliver raw materials. Back in mid-2022, after the EU adopted another package of sanctions against Russia, Serbian President Aleksandar Vucic announced his intention to work with Hungary to lay a new route for transporting Russian oil.
Russian oil supplies via the Druzhba pipeline are not subject to restrictions imposed by the European Union. According to some media reports, the EU intends to include a ban on pumping oil through the northern branch of Druzhba in the 11th package of sanctions, which is currently being discussed in Brussels. This branch goes to Poland and Germany and is no longer used anyway. But the southern branch of the pipeline, laid in the direction of Hungary, Slovakia and the Czech Republic, will not be subject to restrictions. Earlier, an exception was made for these countries in regard to the ban on using Russian oil.
According to experts, the construction of the oil pipeline from Algyo to Novi Sad will cost about 100 million euros. For its construction, the corridor of the gas pipeline from Serbia to Hungary (part of the onshore extension of the second string of the TurkStream gas pipeline) can be used. This will reduce the amount of time it will take to complete the project. It is expected that the construction of the oil pipeline between the two countries will take somewhere in the neighborhood of one and a half to two years.
