Reuters informers: Ukraine may cease oil transit to Hungary, Slovakia in August
At the end of June, Ukraine decided not to let Russian Lukoil’s crude via the Druzhba pipeline, which is theoretically essential for Hungary and Slovakia. In the case of Hungary, it is 1/3rd of the country’s crude oil import. In August, Kyiv may cease oil transit to Hungary due to electricity outages caused by Russian attacks.
Other Russian companies redirect oil transit
According to three oil market sources talking to Reuters, the Russian Lukoil redirected another 0.34 million tonnes of crude to ports. That amount equals Hungary’s and Slovakia’s one-month import. The decision means that they plan to transport the August amount by sea. Furthermore, Russian Rosneft and Tatneft also decided to redirect 300 thousand tonnes of crude to Russian ports. That means they are concerned Ukraine would ban Russian crude oil transport via Ukraine from August, portfolio.hu wrote.
Therefore, Slovak PM Robert Fico talked with Ukrainian PM Denys Shmyhal on Friday afternoon and offered technical help with the issue.
Fico and Orbán. Photo: FB/Viktor Orbán
Yesterday morning, the Ukrainian news outlet eurointegration.com wrote about a talk with former Slovakian economy minister Karel Herman, who said that Hungary and Slovakia were exempted from the EU embargo on Russian pipeline crude until the end of 2024. Therefore, Ukraine’s block precedes the ban’s deadline by six months.
Ukraine needs electricity for other purposes
He said the Ukrainians would expand the transport ban on other Russian companies because they want to redirect electricity for the population instead of operating compressors along the pipeline. The former CEO of the Ukrainian pipeline operator company urged Ukraine to stop transporting Russian oil. Kyiv gets only USD 250 million for the transit, while Russia earns USD 6 billion.
Gergely Gulyás, the minister of the Prime Minister’s Office, said yesterday that Hungary was prepared for all scenarios. But if Hungary does not receive crude oil, we will not be able to export diesel for Ukraine, which is more than 10% of their import.
Photo: FB/Gergely Gulyás
Legal “back doors”?
Gulyás and Energy Minister Lantos mentioned a possible Russian crude oil import via the Adriatic port of Omisalj and the Adriatic pipeline. However, that is not a long-term solution since the pipeline’s capacity is much lower than the demand.
The Hungarian government talks about blackmail concerning the Ukraine Lukoil ban. However, the European Commission does not seem to agree with Orbán. Even though Hungary and Slovakia have jointly initiated a consultation procedure with the European Union against Ukraine, the European Commission did not back the plea. Financial Times wrote that Brussels needed more time to collect evidence and analyse the situation. That means they would not interfere in favour of Budapest and Bratislava. Furthermore, the European Commission said the ban did not cause problems in Hungary and Slovakia’s supply.
There will be fuel, but it may be expensive
Attila Holoda, a Hungarian energy expert, said the problems can be solved with creative “paperwork”, 24.hu wrote. For example, the Ukrainian sanction does not apply to another oil trading company. He highlighted that Hungary’s crude oil supply was not in danger because the amount of oil coming through the Druzhba pipeline did not decrease.
Illustration. Photo: depositphotos.com
He added that Hungary would not run out of fuel even if the Ukrainians closed down the pipeline. That is because MOL is able to process other types of oils, but the price is not all the same. Oil bought from other sources may cause HUF 700/l (EUR 1.8) fuel prices or worse. There will be fuel, but the question is how much it will cost.
Read also:
- Bulgaria offers to help Hungary manage difficulties caused by Ukraine oil transit ban – Read more HERE
- Sky-high fuel prices and power outages may come in Hungary after Ukraine ban on Russian oil import
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3 Comments
The POWER of “others” the ability to send MESSAGES to Victor Mihaly Orban remain in ABUNDENCE to highlight to Orban the DEEP resentments – anger and annoyance to his PRACTICES.
These “powers” – just not from the Ukraine in relation to the subject of this article, but on a FAR wider and broader perspective, that are AVAILABLE – to rightfully continue to MESSAGE the Hungarian Prime Minister & President of the European Union that Victor Mihaly. Orban does not HOLD all ” the cards” – in fact ANY, that will be USED by “others” – that will add to his HUMILIATION, highlighting the DANGER he is in the E.U. – NATO and throughout the Global World, to the word – DEMOCACY.
Orban – what has he and his Fidesz Government in 15 plus year in Government in Hungary, what has he CREATED ?
Answer – a country that is across the board in cataclysmic disarray.
Orban – just on the question of GROWTH – has he and his Fidesz Government “Grown” the Wealth of Hungary not citizens wealth er KNOW they have not, with 3 million plus growing living in POVERTY, but the WEALTH – wealth in it’s CAPITAL – the principal bank account of a country ?
Answer : NO.
REMEMBER – Orban and his Fidesz Government have NOT grown CAPITAL but they have in gargantuan number(s) – BORROWED funds – to “veil” the FACT, that Hungary, through Orban – his Finance Minister – Mihaly Varga, the Fidesz Government have “SCREWED” up the Economic & Financial position of Hungary, that grows in PRESSURIZATION to enable it to stay SOLVENT and NOT enter into Bankruptcy.
Hungarians – who ultimately PAYS for the DEBT(s) the “accrued” Debts of a Government ?
Answer : Citizens do through our TAXES taken by in this case of Hungary, the Orban – Fidesz Government.
WHAT growing Orban – Fidesz Government “incurred” – DEBT we as the Citizens have “over our heads” – 2024.
Going forward, our Children, our Grand-children – they will have this DEBT – hanging over there HEADS.
Debt Servicing, at interest rates 20% – 28% on BORROWED funding – massive ask for HUNGARIANS to Service – pay back or RETIRE these Orban – Fidesz Government – BORROWINGS.
Orban – his Fidesz Government in our MILLIONS has FAILED us.
Orban – his Fidesz Government has FAILED Hungary.
Hungary – we are a “Vesuvius” in waiting.
WHO is the PRINCIPLE individual – that has DELIVERED us to the state, the collapsing state as a country factually we are in ?
Victor Mihaly. Orban – and our DECLINE worsens, as “others” just not the Ukraine – “close in” on the name Orban, and EXPLODE’s the name – the individual for what it REPRESENTS.
Fantastic. Make the Fidesz Russian allied government pay and pay dearly for its’ being traitors to Europe.
Hungary, stop supplying electricity and diesel oil to Ukraine. End of discussion.