Hungary is set to begin paying Ukraine for the transit of Russian crude oil via the Ukrainian section of the Druzhba pipeline to ensure an uninterrupted oil supply, MENAFN reported on the 2nd April, citing a report from Reuters.

The announcement comes after Ukraine's state-owned oil pipeline network operator, Ukrtransnafta, stated that it would increase tariffs for transporting crude oil to Hungary and Slovakia by €2.10 ($2.28) per ton to €13.60 ($14.78), marking an 18.3% increase.

According to the reports, the decision was made in late December, and Transneft, Russia's pipeline operator, confirmed receipt of notification from Ukrtransnafta, stating that it was studying the proposed new rates.

In response, the Ukrainian operator proposed that buyers of Russian crude transported via the Druzhba pipeline should pay the fees themselves.

Hungarian oil refiner MOL has agreed to make the payments, and both companies will need to prepare a new agreement to reflect the increased transit fee that will come into effect from May.

The move by Hungary highlights the complex nature of oil transit through multiple countries and the various negotiations and agreements that need to be made to ensure a smooth and uninterrupted supply of oil.

For Hungary, paying Ukraine for the transit of Russian crude oil is a strategic move to secure its energy supply and ensure the uninterrupted operation of its oil refineries.