Croatia responds to Hungary's oil exemption request

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After three weeks without Russian crude oil arriving via the Druzhba pipeline, the Hungarian-Croatian oil dispute has escalated into a public exchange of words. In his latest post, the Croatian Minister for the Economy referred to the Adria pipeline as a 'reliable supply route', while Hungary is seeking an alternative to replace the lost pipeline supply. The key to finding a solution may lie in the Croatian port of Omišalj.
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For the third week in a row, Russia has not delivered any crude oil to Hungary and Slovakia via the Druzhba pipeline, which was hit by a drone attack in the Lviv region. Although the damaged section has been repaired, deliveries have not resumed. Consequently, Mol has released security reserves and begun purchasing oil by sea.

The key to the solution may lie with the Adria oil pipeline and the Croatian port of Omišalj.

Meanwhile, the issue of supply security has become a major political talking point. Croatian Minister of Economy Ante Šušnjar posted a message on X addressed to Péter Szijjártó, Minister of Foreign Affairs and Trade. In it, he recalled that decades ago, Hungarian strategic thinking supported strengthening the Adria pipeline so that Central Europe would not be forced to rely on a single eastern route.

"The Adriatic pipeline is reliable, safe, cost-competitive, and it has the capacity to meet the needs of our friends in Hungary and Slovakia. It helps Europe step away from Russian energy pressure," he added.

The minister stressed that

Croatia is ready to act responsibly and constructively - fully within EU and OFAC regulations - to protect supply security.

An EU loophole is being activated. This situation is based on the oil embargo adopted by the European Union in summer 2022. This granted Hungary, Slovakia and the Czech Republic a temporary exemption for Russian crude oil arriving via pipeline, while also requiring the development of alternative supply routes. Another important element of the regulation is that if pipeline supplies are interrupted for external reasons, the affected member state must be permitted to import Russian crude oil by sea until supplies are restored.

Hungary has officially informed the European Commission of its intention to activate this exemption and import Russian crude oil via the Adria pipeline.

In response, the Commission said it would monitor the situation and hold an extraordinary meeting of the Oil Coordination Group if necessary. They added that they did not foresee any short-term risk to security of supply.

Based on data from the end of January, Hungary has enough strategic crude oil reserves to last 96 days. Mol has indicated that it may be necessary to release around 250,000 tonnes of strategic crude oil in the first instance if deliveries from the east do not resume.

Cover image (for illustration purposes only): Getty Images

 

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