Ukraine

Orbán cabinet will continue to block EUR 45 billion loan scheme for Ukraine until the US elections

A lot depends on who will win the election in the United States this November. PM Viktor Orbán and his government attached Hungary’s fate to Trump’s victory, which is strange in our history. If Trump wins, Orbán will triumph not only in Hungary but also in Europe. And it seems the Orbán cabinet will practically boycott a huge EU loan for Ukraine until the election results arrive.

Hungary regularly votes against EU decisions

According to Euronews, Hungary confirmed that it would not decide about the basis of a EUR 45 billion loan for Ukraine until the 5 November presidential elections in the United States. The loan would be covered by the unexpected profit of the Russian central bank’s frozen assets, so the loan’s basis is not the European taxpayers’ money. That basis would be completed with US, Japanese, and Canadian financial sources to reach EUR 45 billion.

The United States is concerned about the ambitious plan’s long-term sustainability. That is because all EU member states must renew the anti-Russia sanctions every six months. If a member state vetoes or liberates that financial background, the entire project freezes.

The weakest link is Hungary in that regard. The Orbán cabinet regularly uses its veto right in the European Council. For example, they exempted Patriarch Kirill, one of the strongest religious supporters of Putin’s war in Ukraine, from sanctions. Euronews writes that Hungary uses its veto to favour the Orbán cabinet’s and even Putin’s interests.

Orbán cabinet may continue to block EUR 45 billion loan scheme for Ukraine until the US elections — Pjhoto: FB/Orbán

Hungary gave the green light for the loan scheme this week

To dispel the doubts of Washington, Brussels proposed to increase the anti-Putin sanctions’ renewal time from 6 months to 36 months, so the program’s stability could be granted.

All EU member states were in a rush to accept the loan scheme as soon as possible. The efforts were successful. As we wrote in THIS article, on Wednesday, the Council of Europe agreed on the financial aid package for Ukraine. Since Hungary is the President of the EU, currently, the agreement was reached under Hungary’s leadership.

Council of the European Union mihály varga ukraine loan — The announcement of the decision. Photo: MTI/Bodnár Boglárka

No decision about the prolongation of the sanctions until 5 November

However, the big question was not the acceptance of Ukraine’s theoretic help, but to solidify the financial leg of it. And in that regard, no steps have been taken forward yet.

Euronews said the Orbán cabinet would decide about the prolongation of the sanctions only after the American presidential election. The acceptance of the loan scheme needed only a qualified majority in the Council of Europe. However, the loan’s fundament is the frozen assets of the Russian central bank. Those financial assets can only remain frozen if Hungary votes for them because the decision needs unanimity.

The Hungarian government still believes that decision can wait until 5 November, Mihály Varga, Hungary’s finance minister, made it clear this week in Luxembourg. Without deciding on the sanctions, the money support programme for Ukraine cannot start.

Orbán says President Trump will end the war in Ukraine Orbán cabinet — Photo: FB/Orbán

Varga believes the two presidential candidates represent two opposing scenarios concerning the war in Ukraine. Trump would seek peace while Kamala Harris would continue to support Ukraine’s war efforts.

Read also:

Válasz Online: Hungary’s strongest allies view PM Orbán as a traitor – read more HERE
State-owned Hungarian energy company can conquer Romania’s market after large-scale acquisition – details in THIS article

October 12, 2024

Under Hungary’s leadership, EU reaches agreement to provide Ukraine with EUR 35 billion loan

On Wednesday, the Council of the European Union agreed on a financial aid package for Ukraine, which includes a macro-financial assistance loan of up to EUR 35 billion, as announced by the body, currently under Hungary’s presidency.

Ukraine loan approved

According to the Council’s statement, the package also includes a cooperative mechanism to help Ukraine repay loans of up to EUR 45 billion, provided by the EU and the G7 partners, which include several EU member states along with the United States, Japan, and Canada, Telex reports. The EU and its partners are set to offer Ukraine around USD 50 billion (or EUR 45 billion) in loans, with the EU covering EUR 35 billion of that amount.

Part of the repayment is expected to come from the proceeds of frozen Russian central bank assets, essentially using Russian funds to assist Ukraine.

Hungary could not veto this time: but did it want to in the first place?

The decision required only a qualified majority, meaning Hungary’s government could not veto it. Despite this, some outlets like Euronews and Reuters reported a potential Hungarian veto, which Hungarian Finance Minister Mihály Varga strongly denied, calling the reports “fake news”. He clarified, “They falsely reported that Hungary blocked the EU loan meant to support Ukraine. The truth is that no such block took place, and the relevant legislation is expected to be passed after discussions between Coreper and the European Parliament, likely in October.”

Based on Euractiv’s information, the decision was made by Coreper, the Permanent Representatives Committee, which consists of Brussels-based diplomats from EU member states. The Council’s statement emphasised that in order to swiftly provide macro-financial assistance to Ukraine, the member states agreed that if the European Parliament adopts the Commission’s proposal without amendments, the Council would also approve the text without changes.

However, extending the EU sanctions that have frozen Russian assets requires unanimous approval every year. The U.S. government is concerned that a member state might block the renewal, which is why it proposed a three-year extension instead of the usual one-year period. According to Euronews, Varga suggested that this decision should be made after the U.S. elections.

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October 10, 2024

FM Szijjártó: Hungary doesn’t want EU to send military advisers to Ukraine

Hungary rejects a new European Union proposal to deploy military advisers in Ukraine to coordinate training as it carries the risk of escalating the war, Péter Szijjártó, the foreign minister, said on Wednesday.

He noted that late in 2022 the EU decided to train Ukrainian soldiers in the territory of EU member states, and he noted that Hungary decided against providing soldiers or funding for it, and it rejected training missions on Hungarian soil.

He said that at the same time, Hungary had not tried to prevent other member states from taking part in the initiative. But since then “an extremely dangerous proposal” has been advanced on sending military advisers to Ukraine to carry out coordination tasks in addition to extending the mission’s two-year mandate, Szijjártó said, adding this carried the risk of escalating the war.

“It’s perilous for Hungary, too, as escalation … first takes place in the neighbourhood, not thousands of kilometres away,” he added. “We cannot support the proposal in its current form,” he said, noting that Hungary has requested a revision of it.

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October 2, 2024

Hungarian and Ukrainian foreign ministers hold talks in Budapest to strengthen relations

Ukrainian Foreign Minister Andriy Sybiha met with Minister Péter Szijjártó in Budapest.

Hungary and Ukraine have a vested interest in developing neighborly relations, and the Hungarian government will do everything in its power to aid the process but expects Ukraine to restore the rights of ethnic Hungarians, the minister of foreign affairs and trade said in Budapest on Monday.Speaking after talks with his recently appointed counterpart, Andriy Sybiha, Péter Szijjártó told a joint press conference that it was an “honour” that Sybiha had chosen Hungary as his first foreign destination, “even if it fell through due to scheduling issues”, and congratulated him on his appointment.

Hungary continued to promote peace as the only way “to end the suffering of hundreds of thousands or millions of people and families,” Szijjártó said.

“Hungary is supporting all initiatives bringing about a swift peace, and those raising the hope that the war can be concluded with negotiations and diplomacy,” he said.

Szijjártó confirmed to Sybiha that Hungary would continue “the largest humanitarian mission of its history” until it is needed to help people in difficulties he said.

He said the number of refugees has topped 1.4 million, and nearly 15,000 Ukrainian children have had the opportunity to attend summer camps in Hungary. Hungary has ploughed 66 billion forints (EUR 166.4m) into support for Ukraine, and Ukrainian children are now attending hundreds of schools and kindergartens.

“Hungary is ready to take part in the reconstruction of Ukraine, this is not just a cliche on our part – we’re taking action too. We have been taking part in reconstruction even as the war is still ongoing, as well as the work necessary to restore the operation of healthcare and educational institutions,” Szijjártó said.

Szijjártó also highlighted Hungary’s role in the safe natural gas and electricity supply of Ukraine.

“Since the start of the war, some 300 billion cubic meters of natural gas has flowed through Hungary into Ukraine, and it has also become the largest resource of electricity imports for Ukraine since June. During the summer, some 45 percent of Ukrainian electricity imports arrived in Ukraine from or through Hungary,” he said.

Hungary is also ready to develop cross-border infrastructure, Szijjártó said, noting the recently opened crossing between Nagyhodos and Valyka Palad’ (Nagypalad), and adding that Hungary was ready to increase the capacity of the crossing at Beregsurany. The government has also supported the construction of a large logistical centre in Fenyeslitke, “and we are ready to build a new bridge on the River Tisza”, he said.

“I have also confirmed that we are ready to set up a cross-border company development area,” he said.

Regarding the contested issues between the two countries Szijjártó said bilateral ties must be based on “mutual goodwill, respect and good faith”.

“With respect, we expect Ukraine to restore the rights of the Hungarian ethnic community in access to the mother tongue, education, culture, and public administration.” He added that the ministers have agreed to speed up the work of the working groups addressing Hungary’s 11-point proposal to resolve the situation.

Szijjártó asked Sybiha to ensure that Kyiv refrains from “sudden unilateral moves that put our country’s supplies at risk”, just as Hungary is ensuring the full capacity of energy deliveries to Ukraine.

“I also asked the minister to ensure that Hungarian companies are not discriminated against,” he said.

“The meeting has convinced me that the intention to develop neighbourly relations is mutual,” Szijjártó said.

read also: 1st Hungarian-Ukrainian bilingual school opened in Budapest – details and PHOTOS

September 30, 2024

Controversy: Putin supporters invited to the 29th Budapest International Book Festival

Budapest International book festival putin

The 29th Budapest International Book Festival has yet to begin, but the organisers are already facing criticism for inviting individuals who have publicly supported Vladimir Putin and Russia’s actions against Ukraine. While some are outraged by this decision, the organisers maintain that politics should remain separate from cultural events of this kind.

Founded in 1994, the Budapest International Book Festival is one of Hungary’s most prestigious and eagerly anticipated events. This year marks its 29th edition, running from 26th to 29th September at Millenáris Park in Budapest. Much of the media’s attention is focused on the guest of honour, Jón Kalman Stefánsson, a leading figure in contemporary Icelandic literature, who will also be awarded the Budapest Grand Prize by the Mayor of Budapest. However, others have taken note of the more controversial guests of the Budapest International Book Festival, questioning whether some of the invitees are truly deserving of the honour.

Putin supporters among the invitees

Népszava has drawn attention to two Russian invitees of the Budapest International Book Festival, Alekszej Gravickij and Dimitrij Bak, both of whom have been investigated by Hungarian literary historian Zsuzsa Hetényi. Hetényi uncovered that both individuals are supporters of Putin and the Russian invasion of Ukraine, outlining her findings in a detailed Facebook post. Gravickij, a Moscow-based author, is a member of the Writers’ Union of the Donetsk People’s Republic (DPR). Hetényi pointed out that this writers’ union was established in May 2015, soon after the onset of the ongoing Russo-Ukrainian War.

Putin supporters invited to the 29th Budapest International Book Festival — Source: https://www.facebook.com/budapestinemzetkozikonyvfesztival

It is worth noting that the DPR is a territory seized by pro-Russian separatists from Ukraine. In 2022, Gravickij signed an open letter expressing his support for the so-called “special operation” in Ukraine. Despite these facts, Gravickij is scheduled to participate in two programmes during the festival, according to 24.hu. His book will be discussed during a programme titled How to Create, Destroy and Rebuild Invented and Alternate Worlds on Thursday, followed by a conversation on Saturday entitled Professional Secrets – Meeting Alekszej Gravickij, Author and Screenwriter.

Budapest International Book Festival receives backlash

Hetényi also voiced her disapproval of Dimitrij Bak’s invitation to the 29th Budapest International Book Festival. Bak, a journalist and translator, is the head of all literary museums in Russia and was one of 80 prominent Russian cultural figures who signed an open letter supporting Putin’s actions in Ukraine and Crimea. Hetényi said that it is “compromising and infuriating to participate in an event alongside people like them” and has expressed her intention to protest during their roundtable discussion on Saturday.

Following the online controversy stirred by Hetényi’s post, both Népszava and Index reached out to Katalin Gál, president of the Association of Hungarian Publishers and Book Distributors. Gál responded by stating that participants in the book festival should not be judged in this manner, asserting that they should not be investigated and calling for greater empathy. She also clarified that Gravickij has been invited for his expertise in science fiction, not for his political views.

However, Gál acknowledged that if Hetényi wishes to voice her concerns during the discussion, she is welcome to do so, as the issue is indeed a significant one. Gál suggested that Hetényi “watch or listen to at least one of their programmes,” adding that she could also confront the author directly if she wishes, as her knowledge of his work appears to be limited to Wikipedia. Finally, Gál emphasised that Ukraine will also play a central role at the Budapest International Book Festival, with four programmes dedicated to Ukrainian literature and its connection to the war.

It will be interesting to see how this controversy unfolds and what impact it may have on the Budapest International Book Festival, which remains free for all to attend. The full programme is available on the official website.

Author: Alexandra Kádár

September 26, 2024

Czech President criticises PM Orbán for undermining European unity amid Ukraine conflict

Czech President Petr Pavel has expressed concerns that leaders like Hungary’s Viktor Orbán are making it more difficult to establish the terms of peace for the ongoing Russia-Ukraine war. This is not the first time that the Czech head of state has criticised the Hungarian PM. Additionally, Pavel, in an interview with The New York Times, emphasised the need for Ukraine to be realistic about the likelihood of regaining its occupied territories in the near future.

Pavel: “This may sound appealing, but it’s not true”

According to Pavel, the pro-Russian stance of leaders such as Orbán is weakening European solidarity and will likely result in some Ukrainian regions remaining under Russian control for an extended period, even after the fighting ends, Index reports based on Pavel’s interview with the New York Times. “The most probable outcome of the war is that Russia will retain control over parts of occupied Ukraine, at least temporarily. But that ‘temporary’ period could stretch for years,” Pavel said. This view is increasingly shared by European officials, especially after Ukraine’s unsuccessful counteroffensives last year.

The Czech president criticised Orbán’s rhetoric on supporting Ukraine, calling it nonsensical. He argued that a swift end to the war was essential to prevent further depletion of Europe’s resources.

“The problem lies in populism. It’s easy to say we shouldn’t send weapons to Ukraine and peace will follow. But that’s not realistic,”

Pavel added, referencing Hungary’s repeated claims that Western allies and NATO are war-mongering, while Orbán has advocated for a peaceful solution.

Pavel dismissed the idea that only Orbán desires peace, stating that the Hungarian leader’s approach is misleading. “To constantly claim that everyone wants war, and you’re the only one seeking peace—it may sound appealing, but it’s not true. Unfortunately, many people don’t realise that such promises are not realistic,” Pavel remarked.

The “peace mission”: Orbán’s visit to Moscow

In July, Orbán became the first EU leader to visit Moscow since the invasion began, meeting with Russian President Vladimir Putin. This meeting followed a visit to Kyiv and was followed by a trip to Beijing earlier in the year. However, Orbán’s diplomatic tour did not result in any significant breakthroughs.

Orbán Putin visit Russian cyberattack eu border controls — Photo: www.facebook.com/OrbánViktor

Ukraine’s territorial integrity and future are set to be central topics at this week’s NATO summit, where Ukrainian President Volodymyr Zelenskyy is expected to request continued military and political support from Western allies. Zelenskyy is also slated to present his victory strategy to U.S. President Joe Biden in Washington.

Pavel: “Neither side should expect total victory”

Pavel pointed out that neither side—Ukraine nor Russia—should expect total victory or defeat. Ukraine must come to terms with the reality that it may not regain all its territories, such as Crimea, which was annexed by Russia in 2014 and may never be returned. Conversely, Russia will have to relinquish its broader territorial ambitions over Ukraine. “The solution will likely fall somewhere in between,” Pavel noted.

While Ukrainian officials have signalled a greater openness to negotiations with Russia, they have also made it clear that any peace deal would come with a high price for Moscow, given the enormous loss of Ukrainian lives. However, a recent poll by the Kyiv International Institute of Sociology indicates that the Ukrainian public is increasingly leaning toward the idea of ceding territory if it would lead to an end to the fighting. In the war’s first year, only 8–10% of Ukrainians supported such a move; by May of this year, that number had risen to 32%.

Despite Ukraine’s hopes for a resolution, Western officials maintain that any peace negotiations will need to involve Russia, even as Zelenskyy looks for ways to conclude the war without Moscow’s direct involvement.

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September 24, 2024

Hungarian MOL reaches agreements securing Druzhba crude deliveries

Hungarian oil and gas company MOL on Monday announced that it concluded agreements to secure the continuous transport of crude through the Druzhba pipeline through Belarus and Ukraine to Hungary and Slovakia.

Securing crude through the Druzhba pipeline

Under the agreements with crude suppliers and pipeline operators, MOL Group will take over ownership of the affected volumes of crude at the Belarus-Ukraine border, effective September 9.

The updated transportation agreements and the new takeover arrangements fully comply with all relevant sanctions and provisions, including those of the European Union and Ukraine, MOL said.

Gabriel Szabó, MOL Group‘s downstream VP, said the new arrangement provided a “sustainable solution” for crude transport through the Druzhba pipeline and would contribute to the security of supply in Hungary and Slovakia.

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September 9, 2024

Russian oil dispute in Hungary: Market struggles or internal conflicts

oil and gas pipeline Russian oil mol Hungary's gas supply

Europe has been stirred by statements from the Hungarian and Slovak governments, accusing Ukraine of disrupting their supply of Russian oil through sanctions imposed on the oil company Lukoil. Despite the outcry, investigations by the European Commission and statements from various officials have confirmed that there have been no fuel shortages or price increases.

Background of the Russian oil dispute

On 16 July, Hungarian Foreign Minister Péter Szijjártó met with Russian Foreign Minister Sergei Lavrov in New York. Following their meeting, Szijjártó publicly stated for the first time that Ukrainian sanctions were causing problems. He added that negotiations were already underway with Russia to find a solution.

By late summer, Hungarian officials, including Szijjártó, expressed confidence that they were close to resolving the issue, ensuring that Russian oil would continue to flow to Hungary and Slovakia as it had in the past. However, the situation remains politically charged. Hungary and Slovakia have criticised the European Commission for not intervening or convening talks between Brussels and Kyiv, arguing that the Commission’s conclusion that there was no problem was misguided, as we previously reported.

Conflicting accounts and unclear details

Could Hungary be facing oil shortage? russian oil — Source: canva.com

According to Válasz Online, there are significant discrepancies in the accounts of what transpired. Ukrainian authorities stated that they had informed Mol, the Hungarian oil company, and Lukoil about the planned sanctions in advance, allowing time for adjustments. Mol reportedly assured the Ukrainian state pipeline company that Lukoil’s oil would not transit through Ukraine, and Ukraine subsequently communicated that trade could continue without issue. According to Ukraine, their sanctions did not result in any reduction in oil deliveries to Mol.

However, conflicting details have emerged from industry sources. It has been reported that four oil traders, including a Swiss subsidiary linked to Lukoil, were involved in transporting oil through Ukraine to refineries in Bratislava and Hungary. Ukraine stated that the subsidiary was not subject to the sanctions, and upon investigation, the European Commission concluded that Ukraine was not restricting transit.

Some sources claimed that the Ukrainian pipeline company had misquoted Mol, suggesting that only two traders were named, not four. This included Litasco, a company linked to Lukoil, and Normeston, a Swiss subsidiary with Hungarian-Russian ties, raising questions about who was actually involved.

Uncertainty persists over how much oil was affected by the sanctions. The Ukrainian pipeline company estimated that 260,000 tonnes of oil destined for Slovakia and 105,000 tonnes for Hungary did not arrive in July due to Lukoil’s self-imposed restrictions. However, the Russian business daily *Kommersant* reported different figures, with only 94,000 tonnes less than planned delivered to Hungary and 189,000 tonnes less to Slovakia.

MOL Hungary pipeline oil refinery bulgaria ukraine — MOL’s refinery in Százhalombatta. Photo: FB/MOL

By August, oil supplies through Ukraine had reportedly returned to normal, with Mol sourcing oil from other traders instead of Lukoil. Various reports suggested Normeston had become the new supplier, purchasing oil from Rosneft, another Russian state-owned company, rather than Lukoil.

Some experts suggest that the entire situation may stem from internal competition among Russian oil companies, with Rosneft attempting to push Lukoil out of the remaining EU market. However, according to Kommersant, Lukoil has been replaced by Tatneft, a Tatarstan-based Russian oil company that now reportedly dominates the Slovak and Hungarian markets. However, the portal reports that its sources indicate that Mol has no direct connections with Tatneft.

Hungarian officials have also floated different solutions. Gergely Gulyás mentioned a potential deal for Mol to buy Lukoil’s oil directly at the Russian-Ukrainian border, though experts pointed out that this suggestion was geographically inaccurate, as the Druzhba (Friendship) pipeline, the main route for oil, does not directly connect the two countries but runs through Belarus.

Political and economic consequences

The confusion was further heightened by statements from Ukrainian officials. Mikhail Podolyak, an adviser to the Ukrainian President, suggested in a media interview that the Druzhba pipeline, which supplies Russian oil, could be shut down by the end of the year. He later corrected himself, clarifying that the pipeline would not be closed until 2029, highlighting the ongoing confusion and miscommunication surrounding the issue.

This ongoing saga illustrates the complexities of the oil trade between Russia and EU member states, as *Válasz Online* comments on the issue. The conflicting statements from governments, companies, and experts create an environment of uncertainty and make it difficult to ascertain the true nature of the problem. Industry insiders even believe that this might be part of a broader competition between Russian oil companies, with Ukraine and EU member states caught in the middle.

Ultimately, the issue showcases how entangled and politicised the energy trade between Russia and the EU has become. Statements from politicians, the media, and even industry experts often seem unreliable, contributing to a broader narrative of mistrust.

Read also:

MOL not informed of plan to shut down Friendship crude oil pipeline, company says – Read here
Official: Brussels leaves Hungary and Slovakia to handle Lukoil sanctions alone – Read here

Featured image: depositphotos.com

September 5, 2024

1st Hungarian-Ukrainian bilingual school opened in Budapest – PHOTOS

First Hungarian-Ukrainian bilingual school in Budapest

Hungary’s first Hungarian-Ukrainian dual-language elementary and high school has opened in Budapest.

The school’s inauguration “is a historic moment”, Liliana Grexa, the Ukrainian national minority MP, said after the countries’ respective national anthems were sung at the event on Saturday, and she thanked the House of Ukrainian Traditions for setting up the school.

She said Levente Magyar, the foreign affairs parliamentary state secretary, was among those who helped to advance Hungary-Ukraine relations to the point that opening the school in Budapest became possible.

Fully, 350 children have applied for places at the school and the number is expected to rise during the year, she added. The school has 450 places.

The chance to study in both languages will help in students’ integration while at the same time preserving their native language and culture, Viktor Mikita, the governor of Transcarpathia, told MTI, noting that the school initiative was part of a diplomacy package agreed by President Volodymyr Zelensky and Prime Minister Viktor Orbán.

Interestingly, no Hungarian government officials were present at the ceremony.

Read also:

Ukraine clarifies position: Russian oil transit to Europe will continue through 2029 – read more HERE
MOL not informed of plan to shut down Friendship crude oil pipeline, company says

September 1, 2024

Hungarian defence minister: Most EU members considering steps that could lead to escalation

Most EU member states are considering steps that could lead to the escalation of the war in Ukraine, Hungary’s defence minister said after an informal meeting of EU defence ministers in Brussels on Friday.

The meeting had a pro-war atmosphere with all addresses calling for continued military support to Ukraine, Kristóf Szalay-Bobrovniczky told a press conference.

Defence minister: The only solution is through diplomacy

He reiterated the Hungarian government’s position that the only “enduring solution” to the conflict was through diplomacy with an immediate ceasefire and negotiations.

A proposal on conducting EU military trainings for Ukrainian soldiers in Kyiv was also discussed, the minister said, adding that such a step would carry the risk of an escalation of the war. “Hungary wants to prevent that,” he added, insisting that “dragging the EU and NATO into this conflict must be avoided”.

He said Hungary did not support proposals on providing financial support to Ukraine’s armed forces until Hungarian businesses were sanctioned in Ukraine and measures endangering energy supplies to Hungary were in place.

The minister noted Hungary’s continued active participation in EU military missions including the EUFOR Quick Response 24 annual exercise.

The current Hungarian EU presidency also supports other EU initiatives for the “global South including the Sahel region”, Szalay-Bobrovniczky said. Hungary will contribute from October to the EUNAVFOR Aspides military operation at the Red Sea and will participate in the EU’s military training in Somalia in 2025, he added.

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August 31, 2024

MOL not informed of plan to shut down Friendship crude oil pipeline, company says

Hungarian state oil and gas company MOL said on Friday that it has not been informed in any form about alleged plans to stop the operation of the Druzhba (Friendship) crude oil pipeline.

MOL not informed about Druzhba pipeline stoppage

In response to press reports about Ukrainian presidential advisor Mykhailo Podolyak stating that the pipeline supplying Russian crude to Hungary, the Czech Republic and Slovakia would shut down in January, MOL said: “We would be the first one to receive information about any changes.”

“We continue to have good business relations with the Ukrainian side and supplies are uninterrupted,” the company said.

Podolyak said in an interview cited by online news website hvg.hu that by stopping flows through the pipelines and excluding Russian energy, Moscow would lose its best market.

Czech energy security envoy Vaclav Bartuska told Reuters on Friday that any potential halt in oil supplies via the Druzhba pipeline through Ukraine from Russia from next year would not be a problem for the Czech Republic. He said Ukraine had also in the past warned of a potential halt, adding that “this is not the first time; this time maybe they mean it seriously — we shall see”.

Read also:

Featured image: depositphotos.com

August 30, 2024

Breaking – Ukraine clarifies position: Russian oil transit to Europe will continue through 2029

In a surprising turn of events, Mykhailo Podolyak, advisor to Ukrainian President Volodymyr Zelensky, initially stated in an interview on Friday that Ukraine would completely halt Russian oil and gas transit to Europe starting 1 January 2025. This announcement, first picked up in Hungary by HVG, suggested that the Druzhba pipeline would cease operations, a move that would have caused significant disruptions for several EU countries, including Hungary.

Ukraine clarifies

The statement triggered an immediate response, resulting in notable market impacts, such as a sharp drop in MOL’s stock value. However, by the afternoon, Podolyak reversed his statement, contradicting his earlier claims, 444.hu writes in its report.

According to Ekonomicsna Pravda, Podolyak clarified that Ukraine remains committed to fulfilling its obligations related to Russian oil transit for as long as the relevant agreements are valid. He emphasised that Ukraine will adhere to bilateral agreements made with European countries and continue transporting oil through the Druzhba pipeline until these contracts expire, which is expected by the end of 2029.

He also reiterated Ukraine’s support for the European Commission’s efforts to encourage EU countries still dependent on Russian oil to seek alternative sources.

While oil transit via the Druzhba pipeline seems secured for now, the situation with gas is different. The Russian-Ukrainian gas transit agreement is set to expire at the end of this year, and Ukraine has no plans to renew it. Though this raises concerns about the stability of gas supply and potential price hikes, Podolyak hinted that gas could still flow through Ukrainian pipelines under new terms.

He noted that Ukraine remains open to transporting non-Russian gas, such as Kazakh or Azerbaijani supplies, provided that logistical needs and contractual agreements are met. This would define Ukraine’s precise role in the transit process moving forward.

Read also:

Breaking – Ukraine to shut down Druzhba oil pipeline on 1 January, raising concerns for Hungary’s oil supply

August 30, 2024

Breaking – Ukraine to shut down Druzhba oil pipeline on 1 January, raising concerns for Hungary’s oil supply

The Druzhba oil pipeline, which supplies Russian crude to Hungary, Slovakia, and the Czech Republic, will cease operations starting 1 January 2025, according to a statement by Mykhailo Podolyak, advisor to Ukrainian President Volodymyr Zelensky. This development aligns with Ukraine’s decision to halt Russian gas transit through the Brotherhood pipeline, as Ukraine has opted not to renew its contract with Gazprom, which expires at the end of the year.

Ukraine open to helping, but not with Russian gas

In the past, Hungary received gas via this route, but in anticipation of Russia’s invasion of Ukraine, the country redirected the flow to the Turkish Stream pipeline from the south. Currently, gas continues to flow through the Brotherhood pipeline from Hungary toward Ukraine. Podolyak indicated that Ukraine is open to transmitting non-Russian gas through this route, such as from Central Asia, if appropriate agreements are made, HVG reports.

Europe, he noted, has diversified its energy sources, reducing its reliance on Russia, which no longer plays the dominant role it once did. Podolyak emphasised that should countries want Kazakh or Azerbaijani gas, Ukraine would be ready to facilitate its transport as long as the necessary logistical and contractual frameworks are in place.

Druzhba pipeline to close next January

However, with the Druzhba pipeline’s closure looming, Hungary may face oil supply challenges. Currently, Hungary can only import oil via the Adriatic pipeline from Croatia, apart from the Druzhba line. This raises concerns about the country’s energy security, as reliance on a single pipeline could leave it vulnerable to fluctuations and price hikes.

Zsolt Hernádi, CEO of MOL, Hungary’s state oil company, has long warned of the risks associated with cutting off Russian oil imports due to the war in Ukraine. He argued that relying solely on Croatia for oil supplies is not only economically damaging but also leaves Hungary exposed to potential manipulation by Croatia. MOL has previously voiced concerns that Croatia could exploit this situation by increasing transit fees for the Adriatic pipeline, something MOL already considers excessive.

UPDATE: Ukraine clarifies position

By Friday afternoon, Podolyak reversed his statement, contradicting his earlier claims: read more HERE.

Read also:

August 30, 2024

FM Szijjártó calls US Ambassador Pressman a ‘leading figure’ of Hungarian opposition

David Pressman, the US ambassador to Budapest, is “a leading figure of the Hungarian opposition”, and his statements must be handled as such, the foreign minister said on Thursday.

At a press conference after an informal European Union foreign ministers’ meeting in Brussels, Péter Szijjártó said in response to a question concerning Pressman’s criticism of Hungary’s “peace mission” that the US ambassador was “an opposition activist and one of the leading figures of the Hungarian opposition”.

“His statements must be assessed accordingly,” Szijjártó said, according to a ministry statement. “And if I want to talk about the contents of his opposition activist statements, then I could say that interestingly, when the Italian prime minister went to China, and said that China was an essential partner for dialogue in the current fragile international situation, then the opposition activist did not activate himself.”

“Or when President Zelensky called Donald Trump, he did not express any condemnation, or when the Ukrainian foreign minister recently visited China, we could not hear any criticism from him,” he added.

“So it is obvious that his statements came from and were inspired by his opposition position,” he said.

Commenting on criticism voiced by his Lithuanian counterpart, Szijjártó said Gabrielius Landsbergis was “one of the most pro-war politicians” in Europe.

“He is competing for the title of most pro-war politician; he regularly criticises Hungary’s pro-peace position. I believe his assessment of the situation cannot be considered realistic in any aspect,” he added.

Read also:

August 30, 2024

Hungary to maintain import ban on Ukrainian agricultural produce

agriculture in hungary ukrainian products

Hungary is maintaining the import ban on Ukrainian agricultural produce as the interests of Hungarian farmers “always come first”, István Nagy, the agriculture minister, said on Monday as he received Taras Kachka, Ukraine’s deputy minister of economic development and trade.

Nagy noted that Hungary nevertheless allows the transit of Ukrainian produce to other markets by land and by sea, according to a ministry statement, adding that the EU autonomous trade measures would be enforced until June 5 next year. Hungary’s key interest was for the bloc “to put regulations on the table” that took the country’s interests into account, it said.

The minister also expressed hope that the war in Ukraine would end as soon as possible with a “reassuring” resolution.

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August 27, 2024

How much do Hungarians condemn the Ukrainian oil transit ban – survey

Fully 69 percent of respondents in a recent Nezopont survey “finds it outrageous that Ukraine seeks to restrict oil transits to Hungary and Slovakia”, while 77 percent said they looked to Brussels to mediate between the parties, the Nezopont Institute told MTI on Monday.

Twenty-two percent of respondents, however, said that the Ukrainian ban was acceptable.

Concerning details of the survey results, Nezopont said 47 percent of supporters of the opposition Democratic Coalition and Tisza Party criticised the Ukrainian move.

Concerning proposals under which the Hungarian government could restrict power supplies to Ukraine in response to the oil ban, 47 percent of respondents said they would support such a move, while 42 percent said the opposite.

The survey was conducted between July 29-31, by asking a representative sample of 1,000 adults by phone.

August 26, 2024

FM Szijjártó: Lack of action on Lukoil matter shows EC’s true colours

The European Commission’s lack of action on the matter of Ukraine’s stoppage of transit deliveries of Russian crude from Lukoil bound for Hungary and Slovakia suggests Brussels instructed Kyiv to take the step, the foreign minister said on Saturday.

EU not to help Hungary and Slovakia with Lukoil problems

“I think the fact that the EC has declared that it is unwilling to help with regard to Hungary and Slovakia’s secure energy supply supports the assumption that Brussels instructed Kyiv to create a problem for the energy supply of Hungary and Slovakia,” Péter Szijjártó said at an event in Tihany, on Lake Balaton, after the EC said it would not mediate for Budapest and Bratislava.

“Even though Brussels’ self-destructive policies have substantially weakened the European Union in recent years, it should not be so weak that it cannot protect the interests of two member states from the lark of a candidate country,” he added.

Szijjártó said a solution to ensuring deliveries of Russian crude to Hungary and Slovakia was “very close” and an announcement would be made when the negotiations finished and the papers were signed.

He added that the EC’s failure to act on the matter was “shameful” and showed the EU executive’s “true colours”.

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Official: Brussels leaves Hungary and Slovakia to handle Lukoil sanctions alone

Featured image: depositphotos.com

August 25, 2024

U.S. imposes sanctions on 2 Hungarian entities with Russian ties

The U.S. has placed sanctions on two Hungarian entities, as announced by U.S. Ambassador to Hungary, David Pressman, on the social media platform X.

Hungarian entities sanctioned by U.S.

US Ambassador David Pressman sanctions — U.S. Ambassador to Hungary, David Pressman, on the left. Photo: FB/US Embassy

Pressman informed Hungary’s Ministry of Foreign Affairs on 23 August about the decision. One of the targeted entities had been collaborating with the Russian energy sector and was involved in the planned construction of the Paks II nuclear power plant. The other entity manufactured weapons for the Russian military, 24.hu writes.

“We remain deeply concerned about the Hungarian government’s choice to strengthen its ties with the Kremlin, which continues to leave Hungary dependent on Russian energy,”

Pressman added.

According to Telex, the weapons manufacturer in question is Mátrix Metál Group Ltd., which is currently undergoing liquidation. This company had been supplying products to a Russian firm called Exiton, which were used in the production of Sukhoi fighter jets. Mátrix Metál is registered in an apartment building on Korányi Sándor Street in Budapest’s 8th district, and it is run by a Latvian national, Vladimirs Boreckis.

Met today with Hungarian Foreign Ministry officials to notify them that the United States is imposing sanctions on a range of targets, including on two entities in Hungary, one involved in bolstering Russia’s energy sector (and seeking to work on Paks II) and the other supplying… pic.twitter.com/PDWYLkNKpD

— Ambassador David Pressman (@USAmbHungary) August 23, 2024

Russia uses Western technology in military production

US authorities have grown increasingly concerned about Russia’s military industry, particularly companies producing fighter jets, using Western technology in aircraft deployed in Ukraine. A Radio Free Europe investigation from May revealed that electronic components for Sukhoi jets were being supplied to Russia from the EU,

including from Cyprus and Hungary.

On 23 August, shortly after Ambassador Pressman’s statement, the U.S. State Department issued an official release announcing additional sanctions. These included a Hungarian-based branch of a Russian company.

The sanctioned Russian firm, Меzsregionstroj (referred to as MezhRegionStroj in Hungary), is a construction company involved in Russia’s Vostok project. This massive oil infrastructure endeavour aims to extract and transport oil from the Arctic region, with a goal of producing up to 100 million tons of crude annually, according to the U.S. State Department. The US government has placed sanctions on the Russian firm and its numerous subsidiaries.

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August 24, 2024