Shutdown of the Druzhba oil pipeline: Hungary will tap into strategic oil reserves
Hungary will release 250,000 tons of oil from its strategic reserves due to the suspension of supplies through the Druzhba pipeline, prioritizing its state-owned company MOL.
Hungary has announced that it will tap into its strategic oil reserves to release 250,000 tons of oil as a response to the cessation of oil supplies through the Druzhba pipeline. The move comes after a governmental decree from the Hungarian Ministry of Energy, which states that the released volume represents about 40% of the country’s strategic reserves, and it must be replenished by the end of August. This decision underscores Hungary's reliance on the Druzhba pipeline, which connects it to Russian oil through Ukrainian territory, now experiencing war-related disruptions.
The cessation of supplies through Druzhba has occurred amidst ongoing conflict and attacks on Ukrainian energy infrastructure, leading to interruptions that have left Hungary and Slovakia without a crucial energy source. Although technically feasible, the resumption of Russian oil deliveries has been indefinitely halted, with Ukrainian authorities allegedly preventing them for political reasons, framing it within the ongoing geopolitical tensions in the region. Hungary’s Foreign Minister Péter Szijjártó has described this situation as political coercion aimed at pressuring Hungary to alter its energy policies.
This development has significant implications for Hungary's energy security and shows the intricate ties between regional political stability and energy supplies. Given the ongoing tensions in Ukraine, Hungary’s dependence on Russian oil raises concerns about the vulnerability of its energy assets, making it imperative for the government to develop alternative energy strategies while also managing its existing reserves carefully during these uncertain times.