Hungary's MOL says it received Ukrainian oil via druzhba pipeline after attack

MOL Receives 35,000 Tons of Ukrainian Oil via Druzhba Pipeline After Attack

Overview of the Ukrainian Oil Shipment and Pipeline Disruption

Background of the Druzhba Pipeline Incident

BUDAPEST, March 3 (Reuters) - Hungary's MOL imported some 35,000 tons of Ukrainian crude via the Druzhba pipeline at Kyiv's request after a strike and fire near the pipeline in late January, executive chairman Zsolt Hernadi told commercial television station ATV.

Ukrainian industry officials did not immediately respond to a request for comment.

Suspension of Oil Shipments

Oil shipments to Hungary and Slovakia - the only European Union countries still importing Russian oil - through the pipeline have been suspended since January 27 following what Kyiv says was a Russian attack on pumping installations in western Ukraine. 

Hungary and Slovakia say that Ukraine is keeping the pipeline out of use for political reasons, prompting Budapest to block new EU sanctions on Russia. Kyiv says repairs are taking time.

Details of the Oil Transfer

Pre-Attack Pipeline Operations

Last week Reuters reported, citing three industry sources familiar with the matter, that before it was damaged, the Druzhba pipeline exported some Ukrainian oil and much higher volumes of Russian crude.

Hernadi said MOL believed the pipeline itself suffered no damage.

Emergency Measures and Oil Acceptance

"When the fire broke out...from other storages they started to pump Ukrainian crude into the pipeline. The Ukrainian colleagues asked us...to take over this oil to prevent the problem and fire escalating further," Hernadi said in an interview late on Monday.

"And we took 35,000 tons of Ukrainian crude which arrived on the Druzhba pipeline over 2-3 days."

Ongoing Challenges and Future Outlook

Pipeline Repairs and Security Concerns

Ukraine's embassy in Budapest said in a statement late on Monday that "the possibility and timing of repairs to the pipeline was solely dependent on security circumstances" as Russia was continuing its attacks.

Alternative Supply Routes and Refinery Operations

Hernadi said the capacity of the Adriatic pipeline, which is an alternative to Druzhba to bring up seaborne oil shipments from Croatia, would be tested repeatedly this year.

MOL's main Hungarian refinery is still operating at about 40% below capacity due to a fire last year, Hernadi said, and this would remain the case until August.    

(Reporting by Krisztina Than; Editing by Kirsten Donovan)