The governments of Hungary and Serbia have agreed to develop a pipeline to supply Russian Urals crude to the latter through the Druzhba oil pipeline, reported Reuters.

This move comes as Serbia’s shipments through Croatia have come under EU sanctions.

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Serbia obtains its oil through the JANAF oil pipeline from Croatia.

Last week, the EU agreed to impose new measures against Russia over escalating its war against Ukraine. These new restrictions include an oil price cap for crude deliveries via sea from Russia to third countries, reported the news agency.

Hungarian government spokesman Zoltan Kovacs tweeted: “The new oil pipeline would enable Serbia to be supplied with cheaper Urals crude oil, connecting to the Friendship oil pipeline.”

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Kovacs also added that Serbia’s oil supply mostly comes from a pipeline through Croatia, “but this is unlikely to be possible in the future because of the sanctions that have been adopted”.

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The southern part of the Druzhba, or Friendship pipeline, passes via Ukraine to Hungary, Slovakia and the Czech Republic.

This pipeline has been for long serving as the main supply source for the refineries operating in these countries.

NIS is the only oil company in Serbia.

Russian companies Gazprom Neft and Gazprom own a majority stake in NIS.

Earlier this month, Hungary stated that it is willing to aid Serbia with gas if required.

Hungary is mostly dependent on Russia for oil and gas. It has been critical of sanctions imposed against Russia, stating that these would only increase energy prices.

Last week, Hungary, however, supported the latest sanctions package on Russia.
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Image: Serbia obtains its oil through the JANAF oil pipeline from Croatia. Credit: LoggaWiggler from Pixabay .