JANAF and MOL meet in Zagreb amid heightened tensions

Negotiations wrapped up on Wednesday between JANAF, the company that operates Croatia's Adriatic pipeline, and Hungarian oil company MOL, on the delivery of oil to Hungary and Slovakia - which continue to import large quantities of cheap oil from Russia. 

In light of diplomatic tensions and accusations from Hungary that Croatia was profiting from the war in Ukraine by boosting transportation costs, a new contract, detailing price and quantity, was discussed.

After the meeting, JANAF representatives said that both sides had agreed to lower tensions and that they would reach an agreement that would be good for both JANAF and MOL.

"We did agree that sometimes it's best to put the past aside - this goes for both private life and business. The ego, in this regard, is not a good thing. JANAF will do everything - despite these very challenging circumstances for the company - to find a solution that will take a step towards boosting the transport capacity to MOL's refineries," said JANAF board member Vladislav Veselica.

Board President Stjepan Adanić said that the paradigm had shifted and that further negotiations, which have been planned for later this month, can continue rationally and professionally.

JANAF also announced on Wednesday that they had obtained a licence allowing for the continued transportation of crude oil to Serbia's refinery in Pančevo until 15 October, thus enabling the completion of operations under its current contract.

In January, the U.S. Treasury Department announced sanctions on Serbia's NIS refinery over its Russian ownership. The enforcement of the sanctions, which were set to take effect on Wednesday, have been postponed eight times.

However, in order for the deliveries to continue, both sides need to have a license, which NIS still does not have - despite sending an application earlier this month.

It must be noted that the deliveries to Serbia have represented over 40% of JANAF's income so-far this year.