.jpg)
1 hour ago
3
Article content
(Bloomberg) — Croatia’s Prime Minister Andrej Plenkovic dampened expectations that Hungary could use a pipeline controlled by his country to help replace Russian oil supplies halted by a blockage in Ukraine.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Oil transit along the Druzhba pipeline to Hungary has been halted since late last month amid large-scale Russian attacks on Ukraine’s energy infrastructure. Mol Group, Hungary’s largest energy company, said no oil has been delivered via Ukraine since Jan. 27.
Article content
Article content
Article content
Plenkovic was speaking shortly after Mol said it had asked its government to release strategic oil reserves to keep its refineries operating.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
He said he would consider Hungary’s request to import Russian crude oil via Croatian ports and pipelines. He added Croatia will see how it can fulfill its neighborly role while respecting European Union and US bans on Russian crude.
Article content
“There is an exemption that allows Hungary to buy Russian crude but there is also a system of US sanctions that says something completely opposite,” Plenkovic said Monday.
Article content
To access enough oil, Mol has started supplying its refineries with seaborne crude. However, these shipments are only expected to arrive at the port of Omisalj in Croatia in early March, according to the company, and it will then take 5-12 days for the oil to reach its refineries.
Article content
Hungary relies on the Druzhba pipeline for most of its oil flows and has accused Ukraine of using it for political leverage. The country will need to release around 250,000 tons of reserves if flows through the pipeline are not resumed in coming days, Mol said Monday.
Article content
Article content
Janaf, Croatia’s state-owned pipeline operator, is already transporting non-Russian crude to Mol refineries in Hungary and Slovakia. In recent months, Mol repeatedly complained about Janaf’s capacity and higher-than-usual costs, charges that Janaf has rejected.
Article content
Plenkovic said that the current situation shows that Janaf has been able to satisfy Hungarian import needs all along.
Article content
It “confirms what Croatia has been saying all along, that the Hungarian exemption to get crude from Russia is entirely unnecessary,” he said.
Article content
Energy policy featured in talks between Hungary’s Prime Minister, Viktor Orban, and US Secretary of State Marco Rubio in Budapest on Monday. Rubio said Hungary’s exemption from US sanctions were testimony to the warmth of President Donald Trump’s feelings towards Orban.
Article content
—With assistance from Andrey Lemeshko.
Article content
English (US)