MOL urges Croatia to permit Russian oil transit to Hungary, Slovakia

Regional Oil Supply Disruption and Transit Dispute

Feb 20 (Reuters) - Croatian pipeline operator JANAF must allow transit of Russian seaborne oil to Hungary and Slovakia, refiner MOL Group said on Friday, noting both countries have exemptions to EU sanctions on such imports.

Druzhba Pipeline Halt on Jan. 27

Hungary and Slovakia are scrambling for oil after the Druzhba pipeline from Russia via Ukraine was halted on January 27.

MOL has contracted more oil by tankers from various countries, including Russia, to a Croatian port, and both countries are looking to tap emergency crude reserves.

Croatia’s Refusal to Ship Russian Crude via JANAF

Croatia has expressed its willingness to help but baulked at allowing Russian crude to pass through its JANAF pipeline.

"JANAF must allow the shipments to pass," MOL and its Slovak unit Slovnaft said in a joint statement.

Calls to Set Aside Disputes

"When it comes to security of supply in Central and Eastern Europe, old disputes must be put aside," they said.

Media quoted a Croatian minister late on Thursday as reiterating that Croatia was ready to deliver more oil to the two countries, but not of Russian origin.

Awaiting Croatia’s Official Comment

Croatia's Economy Ministry did not immediately respond to a request for comment.

EU Exemptions and Pricing Context

Hungary and Slovakia are the last EU countries to use Russian pipeline oil, and have been keen to keep doing so given its lower price. Both have also maintained relations with Russia despite the war in Ukraine.

Ukraine has said the Druzhba was halted after infrastructure was damaged in a Russian drone attack.

JANAF vs. Druzhba Fees and Capacity Claims

Hungary and Slovakia have long shunned higher or exclusive usage of the JANAF pipeline, also called Adria, saying it charged higher fees than Druzhba and due to uncertainty over whether it could transport enough oil to cover the full needs of Hungary and Slovakia.

Croatia has insisted the capacity was sufficient.

Capacity Tests Under EU Supervision

MOL said on Friday that Hungary, Slovakia, Croatia and the European Commission have agreed to conduct tests under international supervision to determine its capacity.

"After that, we will finally be able to see clearly what the Croatian section of the Adria pipeline is capable of," the MOL statement said. "At present, there is no point in throwing around figures that have not been verified by appropriate tests."

(Reporting by Jan Lopatka in Prague; additional reporting by Ivana Sekularac in Belgrade; editing by Jason Neely)