Szijjarto Says MOL Will Increase Oil Deliveries to Serbia

Oil and gas company NIS (BETAPHOTO/EMIL VAS)

Hungarian oil company MOL will increase oil deliveries to Serbia, after the U.S. introduced sanctions against Serbian oil company NIS, Hungarian Foreign Minister Peter Szijjarto said on Oct. 10.

Szijjarto stressed MOL's key role in maintaining Serbia's crude oil and fuel stocks, Reuters reported.

Szijjarto promised that, despite all the challenges, MOL would increase deliveries so as to help neighboring Serbia.

"Seeing as MOL plays an important role in supplying Serbia with crude oil and fuel... our Serbian friends can rely on MOL's increased delivery," said Szijjarto.

The Hungarian Ministry of Foreign Affairs and Trade quoted Szijjarto as saying that his country stood by Serbia and that the two sides were in constant contact.

Szijjarto, however, added that those bigger deliveries would not fully make up for the deficit that would be created by the cessation of oil deliveries through the JANAF oil pipeline, via Croatia, and said that the Serbian energy sector was facing challenges.

He also commented on the announced stoppage of supply from Croatia, saying that "it is clear what problems can occur if a country's oil supply depends solely on a single oil pipeline from Croatia."

The sanctions imposed by the U.S. against NIS over the Russian-controlled majority stake in the company came into force on Oct. 9.

JANAF, which transports crude from the Adriatic coast to the refinery in Pancevo, announced on Oct. 8 that its license for supplying Serbia with oil had been extended until Oct. 15.

The pipeline, which delivers between two and three million tons of oil, concluded a contract with NIS last year on the transportation of 10 million tons of oil by the end of next year.

Serbian President Aleksandar Vucic said on Oct. 9 that a realistic estimate was that the Pancevo refinery could operate without additional oil deliveries until Nov. 1, while there would be no problems with fuel until the New Year.