MOL Boosts Oil Supplies to Serbia Amid Sanctions

Hungary's MOL will increase oil deliveries to Serbia following U.S. sanctions on Serbia's Russian-owned NIS refinery. The sanctions led to Croatia cutting crude supplies. MOL aims to maintain Serbia's oil supply, though challenges exist. An oil pipeline linking Hungary and Serbia is planned for 2028.

Hungary's leading oil company, MOL, has announced plans to boost oil deliveries to Serbia after U.S. sanctions targeted Serbia's Russian-owned NIS refinery. The sanctions have caused neighboring Croatia to halt its crude supplies, increasing fears that Serbia's sole refinery could stop operations in the coming weeks.

Hungary's Foreign Minister, Peter Szijjarto, assured that while MOL is prepared to step up supplies, the increase may not completely compensate for the loss of shipments from Croatia. MOL's commitments include enhancing storage capacity and ensuring the continuous operation of its network in Serbia.

Looking ahead, a Hungary-Serbia oil pipeline is in the planning stages, expected to fulfill all of Serbia's crude oil demands by 2028, with an annual transport potential of 4-5 million tonnes of Russian oil from Hungary to Serbia.

(With inputs from agencies.)