MOL: JANAF is violating the law and causes damage if it does not allow through unsanctioned Russian crude oil

JANAF has long been aware that crude oil deliveries to Hungary and Slovakia via the Druzhba pipeline have been interrupted. MOL has already sent the relevant official documents on this matter to the Croatian company. EU regulations are clear: if oil delivery from Russia to a landlocked member state via pipeline is interrupted for reasons beyond that member state’s control, then seaborne crude oil from Russia may be imported into that member state. This position has also been confirmed by the Hungarian government’s sanctions authority in its statement.

The regulation does not contain any preconditions that would require MOL or any other affected operator to seek prior approval or confirmation for this.

MOL’s planned procurement of Russian crude oil transported by sea also fully complies with US sanctions regimes. OFAC’s sanctions regime is publicly available, as is the list of companies permitted to transport goods. The companies contracted by MOL to transport and supply Russian crude oil are not on any U.S. restricted lists, including OFAC’s.

According to the relevant EU and US sanctions, JANAF has no other option but to allow through Russian crude oil shipments arriving by sea. Accordingly, MOL urgently requests JANAF to confirm that it will accept the seaborne crude oil shipments of Russian origin legally imported under EU and US sanctions rules.

MOL underlines that JANAF currently holds a dominant position on the crude oil transportation routes to MOL’s refineries. Refusal to provide the necessary transportation services may therefore constitute an abuse of dominant position under EU competition law. Should JANAF continue to refuse to provide confirmation, MOL will have no other option but to turn to the relevant EU authorities, including the Directorate-General for Competition of the European Commission.

MOL also notes that JANAF will bear legal and financial responsibility for any financial damage resulting from the delayed arrival of the confirmation. MOL reserves the right to assert its claim for damages against JANAF.