Ukraine banned Lukoil products from crossing the border this summer, worrying Hungary and Slovakia, both of which receive Russian oil via a pipeline through Ukraine.
In a statement, MOL said it would “take ownership of the affected crude oil volumes on the Belarus-Ukraine border” starting Monday.
Hungarian government spokesman Zoltan Kovacs praised the workaround. “We welcome MOL’s solution. It is a technological solution,” he said.
The proposal was originally announced by Gergely Gulyás, an official in the private office of Hungarian Prime Minister Viktor Orbán, who said last month that Budapest was pushing for the exchange.
“As soon as we can sign the contracts with the Ukrainian side, they will come into force,” he said, adding that it would cost an additional $1.50 per barrel to secure transit outside of existing agreements.
Hungary initially claimed that the restrictions on Lukoil would trigger a fuel crisis at home. But the EU has repeatedly refused to intervene, saying oil supplies have remained at previous levels. Meanwhile, EU countries have expressed frustration that Budapest is effectively benefiting from Russian energy while the rest of the continent is forced to pull back.
Hungary is allowed to import Russian oil because it received an exemption from sanctions two years ago. The exemption was intended as a temporary measure, but Hungary has actually increased its oil imports via the Ukrainian pipeline by 50 percent since 2021. MOL has also posted record profits. Budapest, which is facing an economic crisis, benefited from the high taxes the company pays.
Hungary and neighboring Slovakia are also apparently pushing for a similar agreement that would allow them to continue importing Russian gas via Ukraine even after a transit contract expires at the end of this year.
