Russian crude oil deliveries to Hungary and Slovakia through the Soviet-era Druzhba pipeline returned to normal levels in May, marking the first full month of uninterrupted supplies since transit resumed in April after a disruption that highlighted the continuing importance of one of Europe's last major channels for Russian oil imports.

According to Reuters, citing industry sources, flows through the southern branch of the pipeline system stabilised during May following repairs to infrastructure damaged earlier this year. The route remains the only pipeline corridor through which Russian crude is supplied to European Union member states under a sanctions exemption granted after Moscow's invasion of Ukraine. Hungary and Slovakia are now the only EU countries still receiving Russian oil through Druzhba.

Transit was suspended in late January after a section of the pipeline crossing Ukraine was damaged by a drone attack. Kyiv blamed Russia for the outage. Budapest blamed Ukraine, which has been attacking Russian oil and gas infrastructure to try and reduce the Kremlin’s income from hydrocarbon exports.

The incident blew up into a major row after former Hungarian Prime Minister Viktor Orban accused Kyiv of dragging its heels on repairs. “No oil, no money” Orban said after blocking the passage of a €90bn EU loan to Ukraine agreed last December. After Hungarian Prime Minister Peter Magyar landslide victory in elections in April, he indicated that he would stick to the same toughline, but since then agreements have been reached and the oil flows have resumed and Budapest has lifted its veto on releasing the €90bn loan.

The halt triggered months of diplomatic friction as the two countries remain heavily dependent on Russian energy supplies despite broader European efforts to reduce imports.

The restoration of flows offers temporary relief for refiners in both countries. Hungary's MOL (BSE: MOL), which operates refineries in Hungary and Slovakia, said it had expanded efforts to diversify crude supplies during the interruption.

"Both the eastern and southern crude oil pipelines are currently operating without disruption, and we are exploring additional pipeline connections, such as the possibility of using the route through (Odesa) in the future," the company told Reuters.

MOL said it had purchased ten different crude grades this year as part of a strategy to reduce dependence on Russian oil. The company has invested heavily in recent years to adapt its refineries to process a wider range of crude blends, reflecting growing uncertainty over the long-term availability of Russian supplies.

The Druzhba pipeline, whose name means "friendship" in Russian, was built during the Soviet era and remains one of the world's longest oil pipeline networks. Before the war, it supplied several Central and Eastern European countries. However, EU sanctions adopted at the end of 2022 have progressively reduced Russian oil imports, with Hungary and Slovakia securing exemptions on the grounds that they lack alternatives.

The return to normal operations comes as Brussels continues to debate further measures aimed at reducing Europe's remaining dependence on Russian energy. The European Commission has proposed a ban on Russian gas imports due to come into effect on January 1, 2027, while several member states are pushing for tighter restrictions on Russian oil shipments. The 21st sanctions package is currently in the works, due to be debated this week, that would further tighten the regime on Russia’s shadow fleet and squeeze exports further.