MOL reports JANAF to European Commission

Hungarian MOL and its Slovak subsidiary Slovnaft have reported the main operator of the Adriatic oil Pipline (JANAF) to the European Commission's Competition Directorate-General for Competition for abuse of a monopoly position, MOL announced on Wednesday, as reported by Reuters.

The MOL Group called on JANAF last Thursday to provide it with an immediate guarantee that it would let through unsanctioned shipments of Russian crude oil arriving by sea, and no later than Friday, February 27. At the time, it warned that it could contact the European Commission and file a claim for damages.

In its statement, MOL said at the time that JANAF was aware that crude oil supplies to Hungary and Slovakia via the Druzhba pipeline had been interrupted, and that European regulations state that, if the delivery of Russian oil via pipeline to a landlocked member state is interrupted for reasons beyond the control of that member state, then the import of Russian crude oil by sea into that member state is permitted.

The Croatian side has repeatedly stressed that JANAF is ready to deliver sufficient quantities of non-Russian crude oil to MOL's refineries in Hungary and Slovakia, at competitive prices.

JANAF dismissed MOL's objection that JANAF's transport tariffs are too high, pointing out that the MOL Group is trying to create the appearance of justification for its own imports of discounted Russian oil, on which it earns around a billion euros in additional profit annually. The difference in the total price of crude oil does not stem from transport, but from the fact that Russian crude oil is around 30 percent cheaper than non-Russian, said JANAF, emphasizing that pipeline transport only contributes a few percent to the total price of oil and is not a decisive factor, JANAF announced on Tuesday.

Šušnjar: MOL's arguments do not hold water

Economy Minister Ante Šušnjar himself reiterated in an interview with the Financial Times on Wednesday that JANAF has the capacity to supply refineries in Hungary and Slovakia.

He recalled that the Adriatic pipeline can transport up to 15 million tons of oil per year, which is more than enough for the needs of refineries in both countries.

"It is time for everyone in the European Union to move away from dependence on Russian fossil fuels, and for Hungary and Slovakia to fully utilize the existing infrastructure that enables safe and stable supply from alternative sources. They are doing so because non-Russian oil is currently flowing normally through JANAF to MOL's refineries. Croatia has a solution. JANAF has the capacity. Excuses change daily, but it is clear to everyone that they no longer hold water," Šušnjar wrote on X.

Source: HRT