Countries agree to build Urals crude oil pipeline to Serbia amid EU sanctions restricting supply through Croatia.
Hungary and Serbia have agreed to build a crude oil supply pipeline to Serbia as the European Union punishment The Hungarian government has announced supply restrictions via Croatia.
Currently, Serbia receives oil from Russia through the JANAF oil pipeline through Croatia. But last week, the EU placed an oil price cap on Russian seaborne deliveries of crude oil to third countries as part of sanctions imposed as a result of Moscow’s war against Ukraine.
“The new pipeline will allow Serbia to be supplied with cheaper Urals crude, connected to the Friendship pipeline,” Hungarian government spokesman Zoltan Kovacs tweeted on Monday.
He said that Serbia’s oil supply is mainly through a pipeline through Croatia, “but this is unlikely to happen in the future because of the sanctions that have been passed”.
1/2 @avucic and Prime Minister Orbán agreed to build an oil pipeline to Hungary. The new pipeline will allow Serbia to supply cheaper Urals crude, connected to the Friendship pipeline.
– Zoltan Kovacs (@zoltanspox) October 10, 2022
Hungary has criticized EU sanctions against Russia. Prime Minister Viktor Orban has speak sanctions have “failed when governments in Europe are collapsing” like a “domino”.
In June, Hungary organized the finalization of the EU sanctions package against Russia, oppose the sanctions about Patriarch Kirill.
The country is heavily dependent on Russian oil and gas, and they argue that these measures have raised energy prices and caused an energy crisis in Europe. But Budapest backed the sanctions package last week.
EU and US are now questioning Serbia’s claims commitment to participate block 27 countries after it signed an agreement with Russia committing to long-term “consultations” on foreign policy issues.
The southern branch of the Druzhba pipeline, or Friendship Pipeline, runs through Ukraine to Hungary, Slovakia and the Czech Republic. This is the main source of supply for the oil refineries of the three countries for many years.
The only Serbian oil company is NIS, in which Gazprom Neft and Russia’s Gazprom jointly hold a majority stake.
This month, Hungary also said it would help Serbia with gas supplies if needed.
Hungary has gas reserves about five to six months of consumption, Orban said.
