Mol Reaches Russia Crude Supply Deal After Ukraine’s Lukoil Halt
(Bloomberg) -- Mol Nyrt., the Hungarian energy company, said it reached a deal that will ensure the continued supply of Russian crude oil via a pipeline running through Ukraine.
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The announcement from the Budapest-based company on Monday came after Ukraine effectively barred Lukoil PJSC from continuing to use it as a transit country in retaliation for Russia’s invasion. The deal will see Mol, which controls refineries in Hungary and Slovakia, take over crude supplies at the Belarus-Ukraine border as of Sept. 9.
Previously, the Russian side was responsible for bringing the crude oil to locations in Hungary and Slovakia close to the border with Ukraine. Lukoil didn’t immediately respond to Bloomberg request for a comment sent outside usual business hours.
“The new arrangement provides a sustainable solution for crude oil transportation on the Druzhba pipeline,” Mol Downstream Executive Vice President Gabriel Szabo said, referring to the pipeline that connects Russia and Hungary via Ukraine. It didn’t specify which company or companies would deliver the supplies.
Hungary and Slovakia are both landlocked nations that obtained temporary exemptions from European Union energy sanctions on Russia. Since Ukraine hardened sanctions on Lukoil in July, Hungary and Slovakia had been receiving crude oil via producers such as Tatneft PJSC.
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