WARSAW/BUDAPEST, March 4 (Reuters) - Hungary's MOL and its Slovak unit Slovnaft reported Croatian oil pipeline operator Janaf to the European Commission's Directorate General for Competition on
MOL reports Croatia's pipeline operator to EU watchdog in fight over Russian oil transit
Dispute Over Russian Oil Transit and EU Sanctions
BUDAPEST, March 4 (Reuters) - Hungarian oil company MOL and its Slovak subsidiary Slovnaft have reported Croatian oil pipeline operator JANAF to the EU competition watchdog over its refusal to allow the transit of Russian seaborne oil imports, they said on Wednesday.
Background: Supply Challenges and Pipeline Outage
The Hungarian oil and gas group has grappled since the end of January with an outage of Russian crude deliveries through the Druzhba pipeline transiting Ukraine, and has had to rely more on the Adriatic pipeline from Croatia.
EU Exemptions and Alternative Supply Routes
Hungary and Slovakia have been given exemptions to EU restrictions on Russian oil to give them time to diversify supplies. MOL has said that under EU sanctions the countries can source Russian crude via maritime routes if the Druzhba is inoperable.
Croatia's Position on Russian Oil Transit
Croatia has expressed willingness to help, it has baulked at allowing Russian crude to pass through the JANAF-operated pipeline.
MOL's Complaint to the European Commission
MOL said on Wednesday it and refiner Slovnaft had reported JANAF to the European Commission's antitrust watchdog on charges of abuse of a monopoly position.
Allegations of Restricted Access
"Since the shutdown of the Druzhba pipeline, MOL Group has repeatedly asked JANAF to confirm that it would accept a seaborne shipment of Russian origin that was imported legally under EU and U.S. sanction rules," MOL said in a statement.
"JANAF has used its control over the essential infrastructure to restrict access. This further exacerbates the supply uncertainty which is already acute due to the current wartime conflicts."
JANAF's Response and Previous Statements
JANAF did not immediately reply to a request for comment. The company, in an earlier statement on Wednesday, denied MOL's allegations that it has engaged in unfair pricing and raised risks to supply security.
JANAF's Role in Regional Oil Supply
Prior to MOL's announcement on Wednesday JANAF said: "JANAF’s role in ensuring stable supply to Hungary and Slovakia has also been confirmed in recent events, when eight tankers of non-Russian oil were accepted to preserve continuity of deliveries."
Political Disputes and Pipeline Repair Delays
The Druzhba pipeline outage - caused by what Ukraine said was a Russian attack - has also sparked a political dispute between the Hungarian and Slovak governments, which have blamed Ukraine for not restoring flows quickly for political reasons. Kyiv has said repairs will take time.
Reporting Credits
(Reporting by Anita Komuves and Ivana Sekularac, writing by Jason Hovet. Editing by Jane Merriman)
