MOL has reached an agreement on the transportation of oil from Russia, the company announced on the Budapest Stock Exchange website. The new agreement offers a sustainable solution for the transport of oil from Russia via the Druzhba pipeline.
The MOL Group has signed agreements with oil shippers and pipeline operators to ensure the continuous transport of oil through the Druzhba pipeline from Russia through Belarus and Ukraine to Hungary and Slovakia.
Following the agreements, the MOL Group took ownership of the oil from Russia at the Belarus–Ukraine border as of 9 September 2024. The updated transportation agreements and the new procedure for the acceptance of oil fully comply with all relevant sanctions and regulations, including EU and Ukrainian ones.
As Executive Vice President of MOL Group’s downstream division Gabriel Szabó stated in the announcement:
‘The new agreement offers a sustainable solution for the transportation of oil from Russia via the Druzhba pipeline. I consider this an outstanding achievement, as it allows MOL to continue using the most efficient and reliable oil processing technology in the Hungarian and Slovak refineries, ultimately contributing to the energy security of both countries.’
It is worth recalling that, according to a previous statement from Ukraine, Lukoil’s oil has not been allowed to pass through its territory since 18 July, prompting complaints from Hungary and Slovakia to Brussels. The EU shelved the issue, claiming there was no real problem; despite the fact that the opposite was true, as the decision caused supply issues and could have caused even greater problems if MOL had not resolved the situation.
Moreover, MOL’s valuation would drop by 20–25 per cent if Russian oil deliveries via Ukraine were halted early next year, before the planned investments are completed. According to Erste Bank Hungary, the closure of the Druzhba pipeline could carve as much as one billion dollars from the Hungarian oil company’s annual profits.
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