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Russian supplier says MOL's diesel supply could be in jeopardy

Russian state-run oil-products company Transneftproduct has warned Hungarian oil and gas company MOL that it cannot guarantee the security of diesel supplies from the beginning of next month due to a dispute between Russia and Ukraine.

MOL Spokesman Szabolcs I. Ferencz said that the company had received a letter from Transneftproduct indicating that it may not be able to guarantee the unimpeded flow of diesel shipments beginning on July 1. Ferencz added that it would possible to purchase diesel from other parties.

Transneftproduct supplies Hungary with an annual total of 900,000 tons of 0.2% sulfur diesel, which is used as a feed product in the production of lower-sulfur diesel needed to meet European Union standards.

The MOL spokesman told MTI that “Hungary's supply of diesel fuel is totally secure, since this depends primarily on the refining of oil, shipments of which will not be disrupted.”

The 900,000 tons of diesel in jeopardy as a result of the dispute between Russia and Ukraine represents 10%-12% of the MOL Group's annual production. (MTI – Econews)