Home MOREBUSINESS & ECONOMY Hungary’s Criticism of Croatia as an Oil Transit Route Provokes Zagreb’s Ire

Hungary’s Criticism of Croatia as an Oil Transit Route Provokes Zagreb’s Ire

by EUToday Correspondents
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Hungary's Criticism of Croatia as an Oil Transit Route Provokes Zagreb's Ire

A recent statement by Hungary’s Minister of Foreign Affairs, Péter Szijjártó, questioning Croatia’s reliability as a transit country for oil has sparked a diplomatic spat.

The European Commission had suggested Hungary and Slovakia use the Adriatic pipeline JANAF, situated in Croatia, for oil supplies not originating from Russia. This proposal was intended as a means to diversify oil imports and reduce dependency on Russian oil amid ongoing geopolitical tensions.

However, Szijjártó rejected this proposal, declaring, “Croatia simply isn’t a reliable country for transit.” This remark was met with strong disapproval from the Croatian government. Croatian Foreign Minister Gordan Grlić Radman described Szijjártó’s comment as “deeply offensive,” expressing disappointment at the unexpected critique from a neighbouring country with which Croatia has sought to maintain amicable relations despite previous unfriendly actions.

In response to Hungary’s concerns, Slovakia, which already receives a portion of its oil through JANAF to its Slovnaft refinery, indicated it had received an offer from the Croatian government to ensure oil supplies. Slovak Foreign Minister Juraj Blanár acknowledged the proposal but highlighted uncertainties, questioning the cost and volume of the potential supplies, noting that “nobody knows the specifics yet.”

Both Hungary and Slovakia have expressed a preference for the European Commission to compel Ukraine to restore the full flow of Russian oil. However, Blanár stated that Slovakia is also exploring alternative solutions if the European Commission does not act.

Despite prolonged negotiations over transit tariffs, Croatian pipeline operator JANAF and Hungarian oil company MOL managed to sign a year-long contract in May 2023. This agreement covers the transport and storage of 2.9 million tonnes of oil via the Adriatic pipeline to MOL’s refineries in Hungary and Slovakia.

On Friday, Hungary also criticised Croatia for allegedly not investing in capacity expansion and failing to confirm the maximum transit capacity of its pipeline. JANAF refuted these accusations, asserting that it continuously invests in its transport and storage infrastructure. The company further clarified that it has demonstrated the capability to transport up to 1.2 million tonnes of crude oil per month towards Hungary.

JANAF also dismissed claims of increased tariffs over the past three years, contradicting Hungary’s allegations. The European Commission, still investigating the situation regarding oil supplies to Hungary and Slovakia following Ukraine’s halt of Russian Lukoil’s oil transit, stated that the decision has not yet impacted oil supply volumes.

Hungary and Slovakia argue that Ukraine’s decision threatens their energy security and have initiated discussions with the European Commission to address their concerns.

Read also:

Ukrainian Sanctions Halt Lukoil’s Oil Shipments to Hungary

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