A new dispute has erupted between Budapest and Kiev over sanctions imposed by Ukraine on the Russian oil company Lukoil.
This has caused tensions with Hungary and Slovakia, as reported by Die Presse.
Oil Dispute Intensifies
The Ukrainian government has banned the transport of Lukoil oil through its territory, affecting oil transported from Russia to Hungary and Slovakia via the southern branch of the Druzhba pipeline.
The foreign ministers of Hungary and Slovakia have written to the European Commission, accusing Ukraine of violating an association agreement with the EU. This agreement mandates that energy goods must be allowed to transit without hindrance.
The EU Commission is looking into the matter but does not expect an immediate impact on the EU's oil supply.
Hungary and Slovakia claim Ukraine’s restriction on oil transit breaches the association agreement. However, EU officials are unsure if Ukraine’s actions can be seen as a legitimate security concern.
Hungary's Strong Reaction
The EU has a general ban on importing Russian oil, with exceptions for countries that rely heavily on pipeline oil.
Hungary's Foreign Minister Peter Szijjarto has demanded that Ukraine’s duty-free status be revoked if it does not lift the transit ban on Lukoil. He also warned that Hungary would block 6.5 billion euros in EU funds for arms and ammunition deliveries to Ukraine if the decision is not changed.
The halt in Russian oil deliveries has raised concerns in Hungary about possible increases in fuel prices. Szijjarto emphasized the seriousness of the situation, noting that Ukraine imports a significant amount of electricity via Hungary.
Potential Consequences
This situation is problematic for the EU, as Hungary’s government, led by Viktor Orbán, often opposes EU decisions on military aid to Ukraine. Many people in Hungary are also critical of the EU’s strong military support for Ukraine.
Russia is trying to exploit these differences for its benefit.
Russian Foreign Ministry spokeswoman Maria Zakharova criticized Ukraine’s actions and urged its partners to explain that responsible countries do not behave this way.
Alexander Novak, Russia’s deputy prime minister for energy, assured that Hungary and Slovakia would continue to receive oil, though he did not specify the delivery route.
There are hints that alternate routes through Belarus might be used.
