Ukraine's stricter sanctions have effectively halted Lukoil's oil deliveries to Hungary.Continue reading
Minister of Foreign Affairs and Trade, Péter Szijjártó, addressed the media in Brussels about the critical issue of Hungary’s oil supply following Ukraine’s recent decision to ban the Russian Lukoil from transporting oil through the country, reports Magyar Nemzet.
This decision impacts not only Hungary but also Slovakia, as both nations rely heavily on this oil transport route. Minister Szijjártó emphasized that energy supply is an infrastructural rather than a political issue, noting that Hungary’s oil needs cannot be met without Russian oil due to the lack of alternative transport routes.
As a result, Hungary, Slovakia, and the Czech Republic had been exempted from EU oil transport sanctions.
He described Ukraine’s decision as a fundamental threat to the energy security of Hungary and Slovakia and a violation of the European Union-Ukraine Association Agreement.
The politician stated, “this decision by Ukraine is a clear violation of the Association Agreement.” He further explained that Hungary and Slovakia have initiated a consultation procedure with the European Union to address this issue. According to the agreement, the European Commission is obliged to represent the aggrieved member states in consultations with Ukraine. If no resolution is reached, an arbitration tribunal can be set up, and the EU has the right to suspend certain treaty obligations if necessary.
The minister highlighted that Lukoil currently supplies one-third of Hungary’s oil imports and around 45% of Slovakia’s.
He called Ukraine’s decision “an unacceptable and incomprehensible move by a country that wants to be a member of the European Union and that, with a single decision, puts the oil supply of two EU member states at fundamental risk.” Mr. Szijjártó also mentioned ongoing discussions with the Slovak government and a recent phone call with the Ukrainian Foreign Minister, who assured him that there would be no issues with oil supplies through Ukraine, which Szijjártó disputed as untrue.
Minister Szijjártó pointed out that Lukoil shipments to Hungary had been halted for several weeks and that Ukraine’s new legislation banning these shipments violates the EU-Ukraine Association Agreement, prohibiting Kiev from interrupting the transit of energy products to EU member states. He reiterated that Hungary and Slovakia have formally requested the European Commission to launch a pre-arbitration consultation with Ukraine, stressing the urgency of the matter due to the acute issue of energy supply security.
If the consultation fails, arbitration proceedings will commence.
In addition to legal and technical solutions being explored to ensure uninterrupted oil supplies, the Foreign Minister criticized Ukraine’s decision as unfriendly and unexpected, especially considering that Hungary has been supporting Ukraine’s energy needs. In June, Hungary supplied 42% of Ukraine’s total electricity imports. He also noted that Hungary’s efforts to connect Ukraine to the European grid and the emergency aid provided by Slovakia, Hungary, and Poland in early July to support Ukraine’s energy system further underline the inconsistency of Ukraine’s actions.
Via Magyar Nemzet, MTI; Featured Image: Pixabay