Naftogaz Assures Deliveries Despite Friendship Pipeline Setbacks
The security of oil transport from Ukraine to Hungary has recently become a point of focus, with changing statements from Ukrainian officials regarding the Friendship pipeline. This pipeline is essential for Hungary’s oil needs as it allows oil to flow into Hungary and Slovakia, with Russian oil making up a significant portion of the processed oil at Hungarian refineries.
Concerns were raised when an adviser to Ukrainian President Volodymyr Zelensky announced that the Friendship pipeline would cease operations from January 1, 2025. This news sparked fears of disruptions to oil supply, affecting both Hungary and Slovakia.
However, there was a turnaround when Mykhailo Podolyak, a senior adviser to President Zelensky, reassured Hungary that Ukraine is committed to maintaining oil transit through the Friendship pipeline. Despite this assurance, Ukrtransnafta, Ukraine’s state-owned operator of the oil pipeline network, has increased oil transport tariffs since Russia’s invasion of Ukraine in February 2022 to minimize Russian profits.
Furthermore, Naftogaz, the Ukrainian state oil and gas company, confirmed a binding oil transit agreement between Ukrtransnafta and the Russian company Transneft, valid until January 1, 2030. This confirmation provides reassurance to Hungary about the stability of Russian oil supplies for the foreseeable future.
Although the situation surrounding oil transport from Ukraine remains dynamic, the recent commitments from Ukrainian officials and confirmations from Naftogaz indicate a likelihood of continued oil supply through the Friendship pipeline. This development is crucial for Hungary’s energy security and economic stability.
