Hungary Steps Up to Secure Serbia's Oil Supply Amid Sanctions

Hungary's MOL will increase oil deliveries to Serbia after U.S. sanctions impacted Russian-owned NIS supplies. Hungary aims to ensure Serbia's oil needs amid geopolitical shifts. Serbia is considering taking over the Russian stake in NIS and plans to build a new pipeline with Hungary for future supply security.

In a strategic maneuver to address energy supply disruptions, Hungary's MOL has announced a significant increase in oil deliveries to Serbia, following U.S. sanctions on Russian-owned NIS. The sanctions, which cut supplies via Croatia's JANAF pipeline, have placed Serbia's sole oil refinery in jeopardy of closure.

Foreign Minister Peter Szijjarto revealed that MOL had already doubled its shipments in November and plans to amplify deliveries to 2.5 times their usual capacity in December. This move is part of Hungary's commitment to helping Serbia maintain a stable crude oil supply amid shifting geopolitical tensions.

As Serbia navigates these complex international relations, its government is poised to take over the Russian stake in NIS should adequate licensing from the U.S. Treasury not be secured promptly. Additionally, there is a push to expedite the construction of a new oil pipeline linking Hungary and Serbia, a project anticipated to meet Serbia's oil needs by 2028.

(With inputs from agencies.)