Foreign Minister criticizes Ukraine’s ban on oil transit
Hungary Faces Oil Supply Crisis Following Ukraine’s Ban on Lukoil
The Minister of Foreign Affairs and Trade, Péter Szijjártó, recently spoke to the press in Brussels regarding the critical issue surrounding Hungary’s oil supply following Ukraine’s decision to prohibit Russian company Lukoil from transporting oil through the country. This decision has a significant impact not only on Hungary but also on Slovakia, as both countries heavily rely on this oil transport route.
Minister Szijjártó highlighted that the issue of energy supply is a matter of infrastructure rather than politics, stressing that Hungary’s oil needs cannot be met without Russian oil due to the absence of alternative transport routes. As a consequence, Hungary, Slovakia, and the Czech Republic have been granted exemptions from EU oil transport sanctions in response to the situation.
Describing Ukraine’s decision as a fundamental threat to the energy security of Hungary and Slovakia, the Minister emphasized that it violates the European Union-Ukraine Association Agreement. He emphasized that Hungary and Slovakia have initiated a consultation process with the EU to address the issue, with plans to involve the European Commission in negotiations with Ukraine. If necessary, an arbitration tribunal may be established, and the EU has the authority to suspend certain treaty obligations.
Lukoil currently supplies one-third of Hungary’s oil imports and around 45% of Slovakia’s, making Ukraine’s decision concerning for the energy security of both EU member states. Minister Szijjártó called the move by Ukraine “unacceptable” and “incomprehensible” for a country aspiring to join the EU.
Despite discussions with the Slovak government and assurances from the Ukrainian Foreign Minister, Minister Szijjártó expressed skepticism about the reliability of oil supplies through Ukraine. He noted that Lukoil shipments to Hungary had already been halted for several weeks and viewed Ukraine’s new legislation as a violation of the EU-Ukraine Association Agreement.
In response to the escalating situation, Hungary and Slovakia have formally requested the European Commission to initiate pre-arbitration consultations with Ukraine, emphasizing the urgency of restoring energy supply security. If these consultations fail to reach a resolution, arbitration proceedings will commence.
The Minister criticized Ukraine’s decision as unfriendly and unexpected, considering Hungary’s previous support for Ukraine’s energy needs. Recent efforts to connect Ukraine to the European grid and emergency aid provided by Hungary, Slovakia, and Poland further underscore the inconsistency of Ukraine’s actions.
As the situation continues to unfold, Hungary seeks a legal solution to restore Russian oil supply, working towards safeguarding energy security for both Hungary and Slovakia in the face of Ukraine’s ban on Lukoil’s oil deliveries.
