Hungary's MOL seeks EU support to transition from Russian oil
A director at Hungarian MOL tells Politico that Hungary may abandon Russian oil if the EU provides financial support for its transition to other suppliers. This move would impact the Russian budget.
The Hungarian company MOL, which operates the only refinery importing Russian oil, is ready to diversify its supplies. MOL's Vice President of Strategic Operations, Gyorgy Bacsa, emphasizes that Hungary needs EU financial support to end its dependence on Moscow by 2026.
According to the Hungarians, MOL needs approximately CAD 678 million to adapt the refinery for processing other types of oil, so it expects "several hundred million" euros from the EU.
"We do it at our pace"
MOL also has a refinery in Slovakia. As Bacsa points out, the company currently receives "zero" financial help because refining does not qualify for EU support.
- We do it at our pace and at what we can afford - he added.
Hungary is one of the few EU countries that can import Russian oil, but the exemption from the ban is temporary. MOL fears that the EU will set an end date or take punitive measures.
- We are worried that the derogation [may] close without having a solution for long-term competitive crude sourcing - the company informed Politico.
MOL has a long-term contract with Lukoil, which expires in 2025. Bacsa notes that the agreement will be renewed if legally possible. Hungary has increased its import of Russian oil, even though other EU countries are reducing purchases. According to experts, Budapest was encouraged by the lower price of the raw material.
MOL is partly owned by the Hungarian government, which has also imposed several taxes on the company. Therefore, it is a crucial company for the economy, as it helps, among other things, to fill budget gaps.
