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Anti-Russian sanctions

Hungary predicts problems for EU in view of ban on Russian oil products

Traders attempted to increase their stocks but "they will be enough for a limited period only," Head of the Energy and Climate Policy Division in the Szazadveg research center Oliver Hortay said

BUDAPEST, February 5. /TASS/. Sanctions of the European Union against Russian petroleum products will lead to a decline in gasoline and diesel fuel supplies to Europe and create problems in the energy security sphere, the Hungary’s Energy Ministry, MOL company and independent experts said.

MOL vowed it would be able to ensure smooth deliveries of gasoline and diesel fuel from its refinery in Szazhalombatta because the plant uses Russian oil flowing over the Druzhba oil pipeline and exempted from sanctions. The Slovakia-based MOL Slovnaft subsidiary, which has the refinery in Bratislava, will have to reduce its exports to Austria, the Czech Republic and Poland.

"The Bratislava Refinery is authorized to export fuel in proportion to the use of non-Russian crude oil and feedstock for refining," MOL said. The plant in Bratislava that is also receiving feedstock from the Druzhba oil pipeline has the technological process where the share of non-Russian oil in its production cannot be above 30%.

Sanctions effective since February 5 threaten the EU countries with the fuel shortage and higher inflation, the Hungary’s Energy Ministry said. "Europe may face shortage of diesel fuel and the rise in petroleum products’ prices, since half of EU diesel fuel needs was supported until now from Russian sources," the Ministry noted.

Traders attempted to increase their stocks but "they will be enough for a limited period only," Head of the Energy and Climate Policy Division in the Szazadveg research center Oliver Hortay said.

"New trade partners will be needed to replenish the deficit," the expert said on the air with the Kossuth Radio Station. China and India appear to become the possible top suppliers to Europe in the future but their capabilities are limited and deliveries will be more expensive because of the longer routes. Chinese and Indian refineries are also using a significant portion of Russian feedstock, he noted.

"The occurrence probability of serious problems with supplies to the EU is growing," Hortay added.

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