(Bloomberg) -- Slovakia plans to hold talks with the European Union about extending its exemption to sanctions on Russian oil, according to Foreign Minister Juraj Blanar.
Slovnaft AS, the Slovak refiner owned by Hungary’s Mol Nyrt., has been processing Russian crude into fuels for shipment to the Czech Republic, and wants to continue doing so after its exemption expires Dec. 5. Without an extension, its use of Russian oil will be limited to supplying the Slovak market.
The refiner, like Mol, is expanding its capacity to handle other types of crude, though a full transition will take years.
The EU slapped sanctions on Russian oil following Moscow’s invasion of Ukraine in 2022, though Slovakia and neighboring Czech Republic and Hungary secured exemptions while they shifted to other sources. Russian crude supplied via the Druzhba pipeline is cheaper than alternative flows, making the switch difficult.
There’ll be a “huge fallout” if Slovnaft can’t process Russian supplies, Blanar said in Budapest Thursday after meeting his Hungarian counterpart, Peter Szijjarto. “The Russian Federation has been a trusted partner.”
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