Oil transit tensions, pipeline pricing, and Central Europe energy strategy

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Hungary’s foreign affairs leadership highlighted a contentious energy transit issue involving Croatia, noting that the price for moving oil through the Adriatic pipeline is currently set at a level that far exceeds typical market rates. The remarks were shared after a Brussels press conference where the Hungarian Minister of Foreign Affairs and Foreign Economic Relations engaged in talks with Kadri Simson, the European Commissioner for Energy, to discuss the European energy framework and cross-border supply routes.

According to the Hungarian diplomat, Croatia is leveraging its strategic position amid regional instability, with the corporate actor MOL indicating a fee structure that significantly raises the cost for oil shipments through the Adriatic corridor. This stance prompted observers to reassess bilateral agreements on oil flows from Croatian ports toward Hungary, Slovakia, and the Czech Republic.

As a result, the existing operational agreement, which governs the pumping of crude oil from Croatian facilities to Central European markets, received a three-month extension rather than a longer-term renewal. Szijjarto emphasized that a stable, longer arrangement could not be finalized in the current political and economic climate, signaling ongoing negotiations and the need for closer coordination with EU institutions.

Budapest signaled expectations for enhanced financial backing from Brussels aimed at broadening energy diversification and strengthening alternative distribution routes across Central Europe. The push aligns with broader EU goals to ensure resilient energy networks and reduce exposure to single-source dependencies amid evolving geopolitical and market conditions.

In a broader energy policy context, the Hungarian government has, in recent days, called for clear boundaries regarding external involvement in major energy projects. A related line of discussion has centered on the Paks nuclear power plant, where discussions about supplier roles and project governance have been raised in connection with Siemens and other international partners, reflecting ongoing debates about energy sovereignty and the mix of public and private sector participation in critical infrastructure.

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