Published in Nacional number 761, 2010-06-15

Autor: Marko Biočina

Forgotten project revived: Kosor met with Putin in Moscow to revive DruzbAdrije

Were this project to become a reality, the company JANAF would be able to organise the main exchange for the trade of Russian oil on the Mediterranean in the Croatian island town of Omisalj; this would bring both financial and geostrategic benefit for the company and Croatia

CROATIAN PREMIER and Russian premier have met four times in the past yearCROATIAN PREMIER and Russian premier have met four times in the past yearCroatian Premier Jadranka Kosor is travelling to Moscow this week for an official meeting with Russian Premier Vladimir Putin. One of the main topics of discussion should be the revival of the DruzbAdria project. This project has been in the plans since 2002 and concerns the linking of the Croatian JANAF pipeline with the large Russian pipeline Druzba, which would make the town of Omisalj on the island of Krk the main export port for Russian oil on the Mediterranean Sea. After it was announced, the project was met by great protests from ecological organisations and even by the top ranks of the Catholic Church in Croatia, and the project was halted with the HDZ's rise to power in 2003.

For years, it was considered that backing away from the already agreed project was the key factor in the poor bilateral relations between Croatia and Russia. However, this cooperation began to improve with the departure of Ivo Sanader. In fact, the bilateral relations took a new upward turn several months ago, when Croatia agreed, under very favourable conditions, to its inclusion in the construction of the large South Stream pipeline project. Diplomatic circles have made it clear that the Russians are very interested in reviving DruzbAdria, which today is a much different project than it was in 2002. Namely, the Russians now view this project as a means for creating a supply channel for the refineries it has purchased in the region over the past five years.

These include the refineries at Bosanski Brod, Pancevo and Novi Sad, and thus a significant share of the JANAF capacity would fall on supplying those facilities. The Russian refineries in Bosnia and Herzegovina and Serbia have already been receiving oil via JANAF, but in the direction from Omisalj, where it would be shipped in on tankers. Many experts believe that now, DruzbAdria would reduce the amount of tanker traffic in the Adriatic Sea.

Furthermore, there is the possibility that the transport of Russian oil from Omisalj will be limited to within the Mediterranean only, thereby eliminating the serious ecological issues regarding ballast waters. On the other hand, making this project a reality would allow JANAF to create at Omisalj the main exchange for the trade of Russian oil on the Mediterranean, thus bringing both the company and the country significant financial and geostrategic benefits.

The establishment of this kind of a spot market at Omisalj has been a long topic of discussion between JANAF leaders and representatives of the Russian state oil company Gazpromnjeft, However, it can be expected that the actual agreement will be made at the highest political levels. There is the possibility that this happens this week in Moscow, and according to unofficial information, works on the system could begin as early as the end of this year.

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