Ukraine considering halting oil transit to Hungary and Slovakia by August, says Reuters sources
Ukraine’s decision to block Russian Lukoil’s crude oil via the Druzhba pipeline has raised concerns for Hungary and Slovakia, as it is a vital source of crude oil for them. With Hungary relying on the pipeline for 1/3rd of its crude oil imports, the potential halt of oil transit in August could have serious implications.
In response to this situation, Russian companies like Lukoil, Rosneft, and Tatneft have redirected oil transit to ports, planning to transport the August amount by sea. This move comes amidst fears that Ukraine may ban Russian crude oil transport via Ukraine from August onwards.
Slovak PM Robert Fico has reached out to Ukrainian PM Denys Shmyhal to offer technical assistance with the issue. However, tensions remain high as Ukraine looks to redirect electricity for the population instead of operating compressors along the pipeline.
The Hungarian government is exploring alternative solutions, such as possible Russian crude oil imports via the Adriatic port of Omisalj and the Adriatic pipeline. While there are concerns about potential fuel shortages and price hikes, experts believe that Hungary’s crude oil supply is not in immediate danger.
Despite efforts by Hungary and Slovakia to seek support from the European Union against Ukraine’s ban, the European Commission has not intervened, stating that the ban has not caused supply problems in the affected countries. As the situation unfolds, the focus remains on ensuring a steady and affordable supply of fuel for the region.
