Hungary slams Ukraine for Lukoil ban only because Russia asked them to?
A Hungarian news outlet wrote that Hungary’s criticism concerning Ukraine’s “Russian Lukoil oil ban” began after FM Szijjártó met FM Lavrov in New York. Now, the Hungarian government communicates that Zelensky’s ban endangers Hungary’s and Slovakia’s oil supply, resulting in possible energy and fuel disruptions. Ukraine claims they let Russian oil through, but Russia halted part of the exports.
Does Russia not give enough oil to Hungary and Slovakia?
According to Válasz Online, the Hungarian government started slamming Ukraine for banning Russian Lukoil’s oil after FM Szijjártó met FM Lavrov in New York in mid-July. Zelensky signed the relevant decree on 26 June, but Hungary remained silent for weeks even though PM Orbán met Zelensky in early July.
The Hungarian news outlet received an English language background paper about the situation from a source close to the Ukrainian government, acknowledging that the amount of oil transported through Ukraine decreased. But that is because the Russians decided to decrease it.
Litasco, Lukoil’s oil trade subsidiary, renounced the July oil amount, 260 thousand tonnes for Slovakia and 105 thousand tonnes for Hungary.
As a result, both the critical Hungarian government and Ukraine are right. There was a fall in the amount delivered. But Ukraine would have let through even Lukoil’s oil provided it was not labelled Lukoil or Litasco, portfolio.hu wrote.
It would be easy to overcome the difficulties with Lukoil
It would be easy to evade the sanction if Hungary and Slovakia (or the MOL processing the crude) could insert another oil trading company in the chain. There are many such firms. As a start, Válasz Online listed three: Tatneft-Europe AG, Normeston Trading SA, and Blackford Corporation Ltd.
However, for some reason, the governments in Budapest and Bratislava are interested in maintaining the political conflict instead of solving it. The two governments turned to the European Commission, but they are on the side of Ukraine, saying the ban does not endanger supply. FM Szijjártó said they could redirect Russian oil transports to the Adriatic pipeline, but Croatia was not reliable in terms of oil transit because Zagreb raised the oil transit fee to five times the average market price.
Is fuel shortage on the horizon?
Hungarian MOL did not communicate about the issue. Válasz Online learned from non-MOL sources that only FM Szijjártó can talk to the press about the issue. MOL CEO Hernádi said at the MCC Feszt that there would not be a fuel shortage even if no Russian oil came. But he did not say there was a chance for a complete Russian oil delivery stoppage. Hernádi also criticised the Hungarian government for the suspension of industrial investments, regulation uncertainties and excess profit taxes.
Válasz Online believes that what we see is a power game between the countries before the 2025 expiration of the Ukrainian-Russian gas transit contract. Another explanation is that the Russians made clear to the EU that they have allies in the region.
At least two “simple” solutions
There are multiple simple solutions, as G7 noticed. One is that the Russians sell their oil at the Russian-Ukrainian border to MOL or another trading company. Another is that the oil comes through Croatia, but the latter would mean Ukraine loses lots of money. The Adriatic pipeline can satisfy the needs of Slovakia and Hungary, G7 wrote.
Hungarian foreign minister in talks with EC Vice-President on situation after oil ban
Péter Szijjártó, the minister of foreign affairs and trade, has talked to European Commission Vice-President Valdis Dombrovskis on Friday, to discuss the situation in the wake of Ukraine’s decision to “introduce an oil blocade without previous announcement”, MTI wrote.
Szijjártó said on Facebook that “it became clear during the talks that we see the nature and consequences of the Ukrainian decision differently.”
Hungary’s stance is clear, Szijjártó said: Hungary thinks that the EC should “not allow a membership candidate to play games with two member states and to put the safety of their energy supply at risk.”
The decision is endangering one third of Hungary’s oil imports fom the east. In Slovakia’s case, that proportions is almost 45 percent, Szijjártó said.
“We also see the step as a breach of the EU-Ukraine Association Agreement,” he said.
Szijjártó also briefed Dombrovskis on Hungary’s stance that Croatia was not a reliable transit country, as it steeply raised transit fees after the war started. Croatia had also failed to agree to Hungary securing capacities for the long term, and the actual capacity of its pipeline remained unclear, he said.
Therefore, Ukraine’s decision to curb transit may make Hungary and Slovakia “vulnerable to various business and political interests”, he said. “We expect the EC to stand up for the interests of Hungary and Slovakia,” he said.
“We have sent the Commission the detailed information requested, and agreed with the Vice-President to remain in constant contact to facilitate a speedy and satisfactory solution,” he said.
Read also:
- Sky-high fuel prices and power outages may come in Hungary after Ukraine ban on Russian oil import – read the details HERE
- No mercy from Ukraine: They insist on restricting Russian oil transport to Hungary, Slovakia
It’s ALL in the GARGANTUAN – “dry up” of Hungary.
Orban – the Fidesz Government – what are we going to be LEFT with ???
The “Gofers” of the Kremlin – following orders.
LOOK at the Big Picture.
It’s WORSENING.
The regime’s messaging has become ‘Orwellian’, to both please the Kremlin and fossil fuels vs. the EU?
What do the Hungarians expect to gain now and in future by antagonising the EU and western allies?
@Anonymous. The constant fight Fidesz creates with the EU is politically designed to rally support among simple minded Hungarians for the government by convincing them that somehow they are all victims of “evil Brussels” and their government is doing all it can to protect Hungarian interests. The message Fidesz has been putting out for years is that the US and the EU are against Hungary and Hungary’s interests are better served by making deals with Russia, China and other eastern countries because they will have more power in the fantasy “New World Order” that Orban says is coming. All he talks about is the decline of the “liberal” EU and US. The propaganda campaign Fidesz has been using is all pervasive through monopoly media control and has been very effective at turning Hungarians against Europe itself. Fidesz has been doing this in agreement with Russia in exchange for making the Fidesz elite rich through corrupt deals with Putin.
Hungary should stop supplying electricity to Ukraine. Hungary should stop supplying diesel for Ukraine. Hungary should stop allowing Ukrainian semis to drive through the country and definitely do not fill their gas tanks. No Ukrainian products should in allowed in the Hungarian market, Hungary can survive without perogies. In other words, disassociation should be the name of the game until Zelensky is retired and a new reasonable Ukrainian government is elected.