Hungary and Serbia are collaborating on a new pipeline to integrate with the Druzhba oil pipeline network.
Following a recent phone conversation between Hungarian Foreign Minister Peter Szijjarto and Serbian Energy Minister Dubravka Djedovic Handanovic, Hungary and Serbia announced plans to accelerate the construction of a pipeline that will deliver Russian crude oil to Serbia via the Druzhba system. This decision follows the latest round of US sanctions against Russia.
In a Facebook post, Szijjarto emphasized the need for strong energy cooperation between nations, citing recent politically-motivated energy crises as evidence of this necessity.
“Certain global actors, through their sanctions and restrictions, can create significant energy difficulties, often disregarding the interests of their allies,” Szijjarto stated.
He described Serbia as a crucial strategic partner, highlighting that Hungary’s energy security is inextricably linked to Serbia’s, and vice versa.
Serbia, heavily reliant on Russian oil imports through Croatia, has been negatively impacted by Western sanctions imposed on Moscow due to the conflict in Ukraine. These sanctions, implemented since 2022, include an embargo on seaborne Russian oil and a $60-per-barrel price cap on other crude oil types.
Hungary has committed to providing Serbia with gas assistance if needed. In October 2022, both countries agreed to build a new pipeline to supply Serbia with Russian Urals crude oil through the Druzhba pipeline system.
The Druzhba pipeline, one of the world’s longest pipeline networks, transports crude oil approximately 4,000km from Russia to refineries in the Czech Republic, Germany, Hungary, Poland, and Slovakia.
The US’s latest sanctions against Russia, announced last week, have exacerbated Serbia’s oil supply challenges. These sanctions target two major petroleum producers – Gazprom Neft and Surgutneftegaz – and their subsidiaries.
One such subsidiary is Naftna industrija Srbije (NIS), responsible for delivering Russian oil to Serbia and neighboring European countries. The sanctions also include related insurance providers, over 30 oilfield service companies, and more than 180 vessels used in Russian oil transport.
Szijjarto cautioned that these extensive sanctions “could lead to a significant surge in fuel prices” in Hungary and surrounding countries.