Ukraine Looks to Store Fuel Reserves in Hungary

Hungarian energy company MOL and Ukraine’s state-owned Naftogaz have signed a memorandum of cooperation on a project to store petroleum products in Hungary near the Ukrainian border, according to the Hungarian newspaper Nepszava.

The facilities would primarily serve the Ukrainian market, allowing Kyiv to move part of its strategic fuel reserves outside the country and further from the threat of Russian missile and drone attacks. Naftogaz says additional storage capacity and more diversified supply routes have become increasingly important to the stability of Ukraine’s fuel market.

The memorandum does not yet amount to a final investment decision. The exact location and capacity have not been disclosed, nor is it known whether new facilities would be built or existing infrastructure used. The cost and financing arrangements also remain unclear.

MOL says it is assessing the technical and financial conditions as well as the environmental, safety and regulatory requirements. The company said the process could take several years.

The agreement was signed at an economic forum held alongside the inaugural summit of the new Carpathian Eight regional initiative. The grouping aims to strengthen energy, transportation and logistics links, cross-border trade and joint investment across Central and Eastern Europe.

The project comes amid recent tensions between Budapest and Kyiv over energy issues.

(mja)