Hungaryʼs sole oil refining company, Mol Nyrt., said it is able to cover up to 80% of its oil needs from non-Russian sources using a pipeline from Croatia.
This is reported by Bloomberg.
According to the agency, this signaled a possible change in Budapestʼs energy policy ahead of Prime Minister Viktor Orbanʼs meeting with US President Donald Trump.
The companyʼs report, published on November 7, said that if supplies via the Druzhba pipeline through Ukraine were to be stopped, Mol could increase its use of the Adriatic pipeline, meeting almost all of its refineriesʼ needs in Hungary and Slovakia. However, the company stressed that such a scenario would come with higher technical risks and logistical costs.
Thanks to cheaper Russian oil, Mol achieved higher refining margins and showed profit growth in the third quarter. However, if US sanctions are tightened, the company will have to accelerate the abandonment of Russian energy sources.
The European Union plans to completely stop importing Russian energy sources after 2027, so Mol is already "cautiously moving forward" with the modernization of its plants to switch to processing alternative oil grades.
Hungarian Prime Minister Viktor Orban has repeatedly claimed that Hungary, being landlocked, is completely dependent on Russian energy. After Russiaʼs full-scale invasion of Ukraine, the country even increased its imports of Russian oil to almost 90%, taking advantage of preferential terms and temporary exemptions from EU sanctions.
US sanctions against “Lukoil” and “Rosneft”
The US President Donald Trump imposed sanctions on “Lukoil”, “Rosneft", and their subsidiaries on October 23. The list includes more than 30 units of both companies, including oil fields, gas fields, and refineries across the country.
In just two days, the shares of both companies have fallen, with Russiaʼs largest oil corporations losing a combined $5.2 billion. “Lukoil” shares fell 7.2%, resulting in a loss of $3.66 billion. “Rosneft” shares fell 3%, taking $1.56 billion with them.
“Rosneft” and “Lukoil” account for almost half of Russiaʼs daily oil production. For example, “Rosneft” generates approximately 17% of Russiaʼs budget revenues.
- Hungarian Prime Minister Viktor Orban will visit Washington on November 7. The Guardian, citing sources, wrote that there he will try to convince US President Donald Trump to hold a meeting with Kremlin leader Vladimir Putin.
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