MOL Confirms Cutting Russian Oil Flow to Hungary, Says No Big Impact

By Veronika Gulyas and Olga Razumovskaya

The suspension of oil product shipments to Hungary via Ukraine won't have a substantial effect on oil firm MOL Nyrt.'s (MOL.BU) operations, the Hungarian company said Tuesday.

MOL said Hungary received 815,000 metric tons of diesel fuel via pipeline in 2013.

"MOL Group procures its raw materials for its four refineries from numerous different sources, and this diversification ensures the security and continuity of supply," MOL said in an email.

Last month, Russia's state-owned oil pipeline operator Transneft halted diesel shipments to Ukraine and transit to Hungary because of a dispute over pipeline ownership with Ukrainian authorities.

"This is an ongoing dispute that had been carrying on since 2005," a Transneft spokesman said. A Ukrainian court confirmed Transneft's ownership of the product line Monday.

The spokesman also said the company has received a letter from Ukraine's energy ministry seeking consultation from the company over the future of the pipelines.

Transneft said it is also concerned by the high level of diesel fuel that has been stolen from the Ukrainian section of the pipeline in recent years.

Czech state-owned crude oil importer Mero AS ‎on Tuesday said all crude oil deliveries to the country are taking place as scheduled. There were no disruptions last week nor this week.

(Sean Carney in Prague contributed to this article.)

Write to Veronika Gulyas at [e-mail]