Budapest (The Brussels Morning Newspaper) – The European Commission had proposed Hungary and Slovakia use the Adriatic pipeline JANAF, located in Croatia, for oil supplies not emanating from Russia. This proposal was planned as a means to diversify oil imports and lower dependency on Russian oil amid ongoing geopolitical tensions.
Why Did Hungary Veto the European Commission’s Proposal for Croatian Oil Transit?
Hungary’s Minister of Foreign Affairs SzijjártĂł vetoed this proposal, declaring, “Croatia simply isn’t a reliable country for transit.” This remark was met with intense disapproval from the Croatian government.Â
How Has the Croatian Government Reacted to Hungary’s Veto and Criticism?
Croatian Foreign Minister Gordan Grlić Radman explained Szijjártó’s comment as “deeply offensive,” expressing disappointment at the surprising critique from a neighbouring country with which Croatia has sought to maintain amicable relations despite previous unfriendly actions.
How Is Slovakia Responding to the Dispute Over the Croatian Oil Pipeline?
In response to Hungary’s concerns, Slovakia, which already accepts a portion of its oil through JANAF to its Slovnaft refinery, indicated it had accepted an offer from the Croatian government to ensure oil supplies. Slovak Foreign Minister Juraj Blanár acknowledged the recommendation but highlighted uncertainties, questioning the cost and volume of the potential supplies, noting that “nobody knows the specifics yet.”
What Alternatives Are Hungary and Slovakia Considering for Their Oil Supplies?
Both Hungary and Slovakia have voiced a preference for the European Commission to compel Ukraine to restore the full flow of Russian oil. However, Blanár said that Slovakia is also exploring alternative options if the European Commission does not act.
What Are the Current Status and Future Prospects for the JANAF Pipeline Contract?
Despite lengthy negotiations over transit tariffs, Croatian pipeline operator JANAF and Hungarian oil company MOL organised to sign a year-long contract in May 2023. This contract covers the transport and storage of 2.9 million tonnes of oil through the Adriatic pipeline to MOL’s refineries in Hungary and Slovakia.
Hungary also condemned Croatia for allegedly not investing in capacity development and failing to ensure the maximum transit capacity of its pipeline. JANAF denied these accusations, asserting that it continuously funds its transport and storage infrastructure. The company further explained that it has demonstrated the ability to transport up to 1.2 million tonnes of crude oil per month towards Hungary.
JANAF also disregarded claims of increased tariffs over the past three years, contradictingÂ
Hungary’s allegations. The European Commission, still examining the situation regarding oil supplies to Hungary and Slovakia following Ukraine’s halt of Russian Lukoil’s oil transit, said that the decision has not yet impacted oil supply volumes. Hungary and Slovakia claim that Ukraine’s decision threatens their energy security and have initiated talks with the European Commission to address their concerns.
