Full Breakdown
Naftogaz and MOL Sign Memorandum for Border Fuel Storage
By Drooid · · How we work
Core Agreement
On September 20, Ukraine’s state-owned Naftogaz Group and Hungary’s MOL Downstream signed a memorandum of understanding to develop petroleum-product storage facilities on Hungarian territory near the Ukrainian border. The agreement establishes a framework for joint evaluation and possible construction of storage capacity intended to serve the Ukrainian domestic market. Details on capacity, cost and timetable have not been disclosed.
Background & Context
Russian missile and drone attacks have repeatedly struck Ukraine’s fuel infrastructure, destroying most large oil depots early in the war and targeting hundreds of petrol stations in recent months. The memorandum was announced at the inaugural Carpathian Eight (C8) summit, a regional cooperation format launched by President Volodymyr Zelenskyy on September 18 that brings together Ukraine, Hungary, Poland, Slovakia, Romania, Czechia, Austria and Serbia.
Hungary’s energy policy has historically been tied to Russia; European Commission data show that in 2025 more than 90 % of Hungary’s imported oil and 74 % of its imported gas came from Russia. The country has pledged to end reliance on Russian gas by October 2027 and is reviewing its nuclear partnership with Rosatom. The new storage project arrives weeks after Budapest described Moscow’s behavior as a threat to Europe.
Data & Statistics
- Russian attacks in September struck roughly 300 Ukrainian petrol stations, many near frontline regions.
- Hungary’s 2026 prospectus indicates long-term contracts with Gazprom provide 4.5 billion m³ of gas annually.
- Naftogaz’s subsidiary Ukrnafta will receive motor fuel from Poland’s Orlen worth up to $500 million in 2027, and three LNG cargoes in the first quarter of 2027.
- Ukraine’s winter natural-gas storage reached 14.6 billion m³ by late August, a month ahead of schedule.
Official Statements & Responses
- “Under conditions of persistent Russian attacks on our fuel infrastructure, diversifying supply routes and creating additional storage capacities outside the bombardment zone is a matter of stability for the entire market,” — Sergii Fedorenko, acting chief.
- Economy and Energy Minister István Kapitány said Hungary expects to meet its gas needs from non-Russian sources by October 2027, aligning with the EU deadline to end long-term Russian gas contracts.
- Russian State Duma Defence Committee member Andrei Kolesnik warned that Russian oil and energy supplies to Hungary could be put “in question” as a response to Budapest’s shift toward Kyiv.
Conflicting Reports & Gaps
All sources agree the memorandum is at an early stage, but they differ on disclosed details. No source provides the planned storage capacity, exact location, financing structure or construction schedule. Integration with existing Hungarian infrastructure remains unspecified.
What’s Next
- Hungary plans to complete talks with Croatia on full-capacity use of the Adria oil pipeline by October 2027.
- A decision on the Russian-built Paks II nuclear project is expected by year-end.
- Naftogaz and MOL will continue joint feasibility studies; construction timing will depend on those assessments and Hungary’s broader energy diversification strategy.