BUDAPEST, July 21. /TASS/. Hungary, Serbia, and Russia have held discussions on constructing a new oil pipeline between Hungarian and Serbian territories for the supply of Russian crude oil, Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto announced following a videoconference with Serbian Minister of Mining and Energy Dubravka Dedovic-Handanovic and Russia’s First Deputy Minister of Energy Pavel Sorokin.

The Hungarian foreign minister noted that Hungary, in cooperation with Serbia, is working on a pipeline project between the two countries, with an anticipated annual throughput capacity of up to 5 mln tonnes. "This will require the construction of 180 km of new pipeline within Hungary. If all goes well, the new pipeline could be operational by 2027. Today, together with the Serbian minister of energy and the Russian deputy energy minister, we reviewed investment Szijjarto for the project and the current state of preparations for construction," Szijjarto was quoted as saying by the MTI news agency.

Hungary has been actively discussing the construction of the new oil pipeline with Serbia since last year. However, this is the first public indication of Russia’s participation in the talks.

In February, the Hungarian government announced plans to invest 320 mln euro over three years in the development of the pipeline, which will enable Serbia to receive oil supplied from Russia via the Druzhba pipeline. The pipeline will have an estimated capacity of around 5 mln tonnes per year. According to earlier statements by Szijjarto, a feasibility study has already been completed. The project envisions the installation of 180 km of pipeline in Hungary and 120 km in Serbia, as well as the construction of a metering station on the border between the two countries.

The pipeline will connect the refinery in Szazhalombatta, owned by Hungarian oil and gas company MOL, with the town of Algyo in southern Hungary and then with the Serbian city of Novi Sad. This will allow Hungary to become not only a consumer but also a transit country for oil trade, while also providing Serbia with new sources of supply. The refinery in Szazhalombatta, located approximately 30 km south of Budapest, is Hungary’s largest oil processing facility and primarily uses Russian crude delivered through the southern branch of the Druzhba pipeline.

The project is being developed jointly by MOL and Serbian company Transnafta. It is expected to play a strategic role for both countries, particularly in light of rising transit costs through Ukraine and Croatia.