Overview
- Naftogaz and Hungary’s MOL announced a memorandum of understanding to build oil product storage near the Hungarian–Ukrainian border on Sunday, Sept. 20, 2026, saying the sites would strengthen fuel reliability for Ukraine.
- On Monday, Sept. 21, Prime Minister Peter Magyar told parliament Hungary will not allow construction and said the plan did not move beyond the signed MOU.
- Officials emphasize the MOU is non-binding and any real construction would require explicit government approval and take years to complete.
- MOL’s partial state ownership gives Budapest leverage over the project and Magyar said he has instructed MOL’s CEO Zsolt Hernadi to coordinate future actions with the new government.
- The dispute leaves Ukraine’s plan to hold fuel reserves outside strike-prone areas on hold and forces Kyiv to seek other cross-border or domestic options to keep supplies stable for consumers.