Serbia and Hungary have agreed to build a pipeline to supply Serbia with cheaper “Russian Urals crude oil via the Druzba (Friendship) oil pipeline,” said the Hungarian authorities, Radio Free Europe (RFE) reported.

The construction of the pipeline was agreed following European Union’s (EU) eight package of sanctions against Russia which limits Russian crude oil imports.

Hungarian Government spokesman Zoltan Kovacs wrote on Twitter that Serbian President Aleksandar Vucic and Hungarian Prime Minister Viktor Orban agreed to build an oil pipeline to Hungary which will enable Serbia to be supplied with cheaper Urals crude oil.

“At present, the country’s oil supply is largely via a pipeline through Croatia, but this is unlikely to be possible in the future because of the sanctions that have been adopted,” Kovacs wrote.

The southern branch of Druzba, or Friendship pipeline, runs via Ukraine to Hungary, Slovakia and the Czech Republic, and has been the three countries’ primary source of crude oil supply for years.