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MOL informs EU watchdog of Croatian pipeline operator in dispute over Russian oil transit

On Wednesday, the Hungarian oil company MOL reported Croatian oil pipeline operator JANAF to EU Competition Watchdog for refusing to allow Russian seaborne oil imports to be transited.

Since the end of January, the?Hungarian Oil and Gas group has been struggling with a disruption of Russian crude supplies through the Druzhba pipe transiting Ukraine. They have had to rely on the Adriatic Pipeline from Croatia.

Hungary and Slovakia were exempted from EU restrictions on Russian oil in order to allow them to diversify their supplies. MOL said that under EU sanctions, countries could source Russian crude through maritime routes if Druzhba was inoperable.

Croatia has shown a willingness to help but has been reluctant to allow Russian crude oil through the JANAF operated pipeline.

MOL and refiner Slovnaft reported JANAF on Wednesday to the European Commission’s antitrust watchdog for alleged?abuse a monopoly situation.

MOL Group said that since the shutdown of Druzhba, it has asked JANAF repeatedly to confirm whether or not they would accept a shipment from Russia that was legally imported under EU and U.S. sanctions rules.

JANAF used its control of the essential infrastructure to limit access. The supply uncertainty, which was already high due to wartime conflict, is further exacerbated.

JANAF didn't immediately respond to a comment request. In a statement released on Wednesday, the 'company' denied MOL’s claims that it had 'engaged in unfair pricing and raised security risks for supply.

JANAF stated that, prior to MOL's announcement of Wednesday: "JANAF has played a key role in maintaining stable supplies?to Hungary?and Slovakia?when eight tankers containing non-Russian crude oil were accepted in order to maintain continuity of delivery."

The Druzhba outage, caused by what Ukraine claimed was a Russian strike, has also sparked a dispute between the Hungarian and Slovak government. Both have accused Ukraine of not restoring flow quickly because it is political. Kyiv said that repairs would take time.

(source: Reuters)