Naftogaz Confirms Deliveries Amid Friendship Pipeline Disruptions

In recent developments, the security of oil transport from Ukraine to Hungary has been a focal point of concern amid changing statements from Ukrainian officials regarding the Friendship pipeline, writes Világgazdaság.

As Hungary Today earlier reported, the potential closure of this vital pipeline raised alarms over Hungary’s oil supply security, particularly given that Russian oil typically comprises about two-thirds of the processed oil at the country’s refineries.

The Friendship pipeline, a crucial infrastructure for Hungary’s oil needs, traverses Ukraine, allowing oil to flow into Hungary and Slovakia. The pipeline had previously been granted a special exemption from EU sanctions, ensuring uninterrupted supplies. However, the situation escalated when an adviser to Ukrainian President Volodymyr Zelensky announced that the pipeline would cease operations starting January 1, 2025.

This abrupt statement shocked both the Hungarian government and oil company MOL, leading to fears of severe disruptions to oil supply, which would affect not just Hungary but also Slovakia, where a significant portion of Russian oil is refined.

Shortly after the announcement, the Ukrainian side appeared to reverse course. Mykhailo Podolyak, a senior adviser to President Zelensky, reassured Hungary that Ukraine was committed to maintaining oil transit through the Friendship pipeline. He stated, “Ukraine is ready to meet its obligations on the transit of Russian oil until the relevant contracts expire,” signaling a return to the previous commitment of uninterrupted oil supplies.

Despite this assurance, the situation remains complex, as Ukrtransnafta, the state-owned operator of Ukraine’s oil pipeline network, has increased its oil transport tariffs since Russia’s invasion of Ukraine in February 2022.

This rise in costs aims to minimize Russian profits from oil and gas sales while still facilitating the flow of oil through the Friendship pipeline.

The transition to receiving oil at the Ukrainian border, with indications that MOL would receive Russian crude in a new format, highlights a significant shift in logistics and operations.

Recently, Naftogaz, the Ukrainian state oil and gas company, confirmed the existence of a binding oil transit agreement between Ukrtransnafta and the Russian company Transneft, which remains valid until January 1, 2030. This statement provides critical reassurance to Hungary about the stability of Russian oil supplies for the foreseeable future, despite recent tensions.

While the situation surrounding oil transport from Ukraine remains fluid, the recent clarifications and commitments from Ukrainian officials, alongside Naftogaz’s confirmations, indicate a likelihood of continued oil supply through the Friendship pipeline.

Government to Secure Oil Supplies despite the Ukrainian Blockade