Serbia May Connect To Druzhba Pipeline In Light Of New Sanctions Against Moscow - Ministry

The Serbian authorities are considering connecting to the Druzhba oil pipeline in Hungary in light of the new package of EU sanctions against Moscow, which prevents the delivery of Russian oil through Croatia, the Serbian Ministry of Mining and Energy said on Friday

BELGRADE (UrduPoint News / Sputnik - 07th October, 2022) The Serbian authorities are considering connecting to the Druzhba oil pipeline in Hungary in light of the new package of EU sanctions against Moscow, which prevents the delivery of Russian oil through Croatia, the Serbian Ministry of Mining and Energy said on Friday.

On Thursday, the European Union announced the eighth package of sanctions against Moscow which, among other things, sets a framework for capping the price of Russian seaborne oil exports at a level coordinated by G7 allies. The measure will take effect from December 5 for crude oil and from February 5 for refined petroleum products.

The package was actively supported by Croatia which receives tankers with oil products via the port of Omisalj located on the island of Krk in the Adriatic Sea. From there, oil is sent to Serbia via a pipeline to be processed at the country's NIS plant, which is 56.15% owned by Russia's Gazprom Group companies. According to Serbian Interior Minister Aleksandar Vulin, the eighth package of sanctions against Russia is also the first package of sanctions against Serbia, which depends on the supply of Russian oil through Croatia.

"The plan is to diversify the supply of crude oil by connecting to the Druzhba oil pipeline. There are two options for connecting to it. The first is the laying of the pipeline to Szeged, to Algyo. The length of this oil pipeline, which would partially ensure the (necessary) volume for the oil refinery in Pancevo, is about 128 kilometers (80 miles), of which 104 kilometers would be in Serbia, the volume of investments is about 83 million Euros ($81 million), 64 of them in our territory," the ministry said in a statement.

The second option for connecting to Druzhba pipeline near Budapest is the construction of an oil pipeline from Novi sad to Szazhalombatta with a length of 400 kilometers, the estimated cost of which is about 240 million euros, the ministry noted.

Both options are currently being analyzed, the statement read.

Earlier in the day, Serbian Prime Minister Ana Brnabic said that the EU ban on Russian seaborne oil would increase Serbia's oil spending by 20%.