Hungary's PM opposes plan for Ukraine oil storage facility on Hungarian territory

Hungarian Prime Minister Péter Magyar told parliament on September 21 that he opposes plans to build an oil storage facility for Ukraine on Hungarian territory, calling the project a threat. He said it would not proceed as long as his party, Tisza, remains in power.

Magyar said he had already informed MOL's leadership of his position, noting that the Hungarian state holds a 25% stake in the oil company.

Memorandum signed in September

Naftogaz CEO Serhiy Fedorenko announced on September 20 that a memorandum had been signed with MOL on the storage facility, as part of the Carpathian Economic Forum. The agreement envisions building a storage site for Ukraine's needs near the Hungarian-Ukrainian border.

Writing on Facebook, Fedorenko said that diversifying supply routes and creating additional storage capacity outside the strike zone matters for market stability, given ongoing Russian attacks on Ukraine's fuel infrastructure.

Hungarian government denies authorization

Hungarian authorities said the government did not authorize MOL to negotiate the facility's construction. MOL, for its part, said the agreement is only preliminary and that preparing the project will take years. The company also noted it already stores oil in Hungary on behalf of other EU countries as well as countries outside the bloc.