Serbia will reach Druzhba – Newspaper Kommersant No. 188 (7389) of 11.10.

Serbia and Hungary have agreed to build an oil pipeline that will allow the supply of Russian oil to Serbian refineries under the EU embargo on the supply of sea shipments from the Russian Federation. Now Serbia receives oil from Croatia, and plans to connect to the Hungarian section of the Druzhba oil pipeline. We are talking about the construction of a pipe with a length of about 130 km, which technically can be built in less than a year. Until then, Serbia will apparently have to buy oil of non-Russian origin at a higher price.

Serbian President Aleksandar Vucic and Hungarian Prime Minister Viktor Orban have agreed to build an oil pipeline to deliver Russian oil to Serbia via the Druzhba pipeline. This was announced on October 10 by the speaker of the Hungarian government Zoltan Kovacs.

The laying of an oil pipeline between the countries was required due to the introduction of an EU embargo on the purchase of sea shipments of Russian oil from December 5. Now Serbia receives oil for its two refineries with a total capacity of more than 7 million tons, controlled by NIS (56.15% belongs to Gazprom structures), through an oil pipeline from the Croatian port of Omisalj. Initially, the EU sanctions provided for an exception for the supply of oil to Serbia, but adopted on October 7 eighth package of sanctions The EU removed it. According to the Serbian authorities, this was due to the position of Croatia. According to Serbian Prime Minister Ana Brnabic, a ban on oil supplies from Russia through Croatia will increase Serbia’s costs for oil purchases by 20%.

Druzhba runs south from Russia through Ukraine to Slovakia, the Czech Republic and Hungary. Deliveries through Druzhba, at the insistence of Hungary, are excluded from EU sanctions until the end of 2024. As reported by the Serbian authorities, it is planned to build a 128 km long oil pipeline from Novi Sad to the village of Aldie, which could cost about €83 million. In addition, the option of connecting to Druzhba near Budapest by building a branch from Novi Sad to Sazhalombatta was considered. 400 km long, worth €240 million.

Transneft, the operator of Druzhba, and Gazprom Neft did not comment on the situation.

A Kommersant source close to the government notes that there will be no problems with the shipment of oil through Druzhba, since there are now a lot of free capacities in the pipeline.

According to him, the construction of the oil pipeline itself can take literally two to three months, but before that, it is necessary to carry out research work and obtain all regulatory approvals, which will significantly lengthen the process.

As the head of the Center for Analysis of Strategy and Technologies for the Development of the Fuel and Energy Complex of the Gubkin Russian State University Vyacheslav Mishchenko notes, the oil pipeline can be launched by the middle or end of next year if approvals and licensing in Hungary are not delayed. Given the permits for Hungary to receive Russian oil through the pipeline, Serbia will be provided with raw materials for at least two years. The analyst considers the passage of the southern branch of Druzhba through the territory of Ukraine to be the main risk.

Igor Yushkov, an expert at the Financial University under the Government of the Russian Federation, believes that oil supplies from Russia are fundamental for Serbia, since the effectiveness of NIS was ensured largely due to the synergistic effect from the supply of Russian raw materials. Until the pipeline is built, he notes, it will be possible to use the existing transport infrastructure: that is, to supply Russian oil from Druzhba through the pipeline through Hungary to Croatia, and then through the existing branch to Serbia. It will be more expensive, but such a scheme can be launched very quickly. But here the question is in the consent of Zagreb, which, on the one hand, helps Serbia in this case to receive oil from the Russian Federation, but on the other hand, it helps to increase pumping through Druzhba, and hence the profits of Ukraine, says Mr. Yushkov.

Olga Mordyushenko