'Great achievement'. Hungary manages to unblock transit of Lukoil oil through Ukraine

Hungarian energy company MOL has reached an agreement to ensure the uninterrupted supply of crude oil through the Druzhba pipeline, which runs through Ukraine, according to the statement published on the Budapest Stock Exchange website.

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According to the agreement, MOL, which controls oil refineries in Hungary and Slovakia, will take over the supply of crude oil at the Belarusian-Ukrainian border starting September 9.

The updated documents, as noted, fully comply with all sanctions, including those imposed by the European Union and Ukraine.

"The new arrangement provides a sustainable solution for crude oil transportation on the Druzhba pipeline. I consider this a great achievement," said Gabriel Szabó, MOL Group Downstream Executive Vice President.

The announcement does not specify which company or companies will carry out the supply. It also does not mention whether the Ukrainian authorities have given consent for the transportation of oil to any other company—following the imposition of sanctions against Russian Lukoil.

In August, the Minister of the Hungarian Prime Minister's Office, Gergely Gulyás, said that it was proposed to move the point of oil transfer from the western border of Ukraine to the eastern border.

In this case, the Hungarian MOL would be responsible for the transit, and the oil would become approximately $1.5 more expensive per barrel.

According to Gulyás, the Ukrainian side seems not to oppose such an option.

On July 17, 2024, it was reported that Ukraine's sanctions had blocked the transit of Russian Lukoil oil to Hungary and Slovakia. This provoked a strong reaction from these countries, which are important suppliers of fuel and electricity to Ukraine, bordering on blackmail.

Ukrainian Prime Minister Denys Shmyhal ruled out the possibility of lifting sanctions against Lukoil, and the European Union did not respond to Hungary's complaints, forcing it to seek other options.