Cheap crude: what do Russian sanctions exemptions mean for CEE downstream markets?
The leaders of the European Union member states have agreed on the embargo on Russian oil. While most of the EU will phase out Russian imports by the end of the year, some countries in the CEE region, relying on pipeline deliveries, were granted temporary exemptions. As the price of Russian crude is heavily discounted, MOL Group, owner of Hungary’s Duna and Slovakia’s Bratislava refineries, is set to strongly benefit from the decision, which potentially gives it a competitive advantage in fuel wholesale markets in the region. This insight explores the potential implications for the regional market and how the extraordinary refining margins could help MOL to reach its strategic objectives.