Ukraine

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

Nuclear deal USA Hungary sanction

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.

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

lukoil russia oil hungary slovakia

The European Commission has refused to mediate between Hungary, Slovakia, and Ukraine regarding the sanctions Kyiv imposed on the Russian oil company Lukoil, according to an EU spokesperson on Friday. This decision leaves the two EU member states without any external support from Brussels.

No immediate threat to energy security

The Commission concluded that immediate consultations were unnecessary, as the sanctions on Lukoil do not pose a threat to European energy security. According to the spokesperson, the sanctions do not affect oil transit via the Druzhba pipeline, as long as Lukoil is not the official owner of the oil being transported, Index reports.

In June, Ukraine imposed sanctions on Lukoil, banning the company from operating in the country. Hungary and Slovakia had previously expressed concern that these sanctions jeopardize their energy supplies, but the Commission found no reason to intervene.

Hungary’s solution to Lukoil sanctions

lukoil russia oil hungary slovakia
Photo: MTVA/Bizományosi: Róka László

Hungary provided the Commission with additional information on the issue, which it will review, the Hungarian News Agency (MTI) reports. Meanwhile, Hungary’s MOL Group has worked out a potential solution, agreeing to take over the oil shipments directly from the Russia-Ukraine border. However, this would raise the price of oil by around EUR 1.50 per barrel due to the increased transportation costs.

Hungarian minister Gergely Gulyás noted that while the agreement could be acceptable to Ukraine, it will only be finalised once all contracts are signed. He expects this to happen by early autumn.

Sanctions threaten Hungary and Slovakia’s oil supply

Ukraine’s sanctions on Lukoil have complicated Hungary and Slovakia’s ability to import Russian oil, a key supply route for both countries. Hungary imports 70% of its oil from Russia, with about half of that coming from Lukoil. This amounts to 2 million tons of crude annually, covering one-third of Hungary’s oil imports.

Foreign Minister Péter Szijjártó remarked that Ukraine’s goal is to cut off one of the Kremlin’s primary revenue streams, especially crucial over two years into Russia’s full-scale invasion of Ukraine. However, Hungary’s dependence on Russian oil raises fears of supply shortages.

Reliance on the Druzhba pipeline

Oil deliveries pipeline Russia
Druzhba pipeline. Photo: Creative Commons CC BY-SA 3.0

The Lukoil sanctions could lead to significant supply issues for Hungary and Slovakia. Currently, both nations rely heavily on the Druzhba pipeline for their oil imports, with MOL Group operating refineries in both countries. In the medium term, this could impact energy prices and availability, with Hungary seeking alternative routes through Croatia via the Adriatic pipeline, which does not operate at full capacity.

Despite these challenges, MOL’s CEO Zsolt Hernádi remains cautiously optimistic, stating that a fuel shortage is not expected. He noted, however, that replacing Lukoil’s vast oil supply, given its significant storage capacity, would not be easy.

Alternatives and concerns for future supply

Hernádi acknowledged that while oil can be supplied from Croatia, Slovakia and the Czech Republic would face greater challenges if the Druzhba pipeline were to stop operating. The Adriatic pipeline is not a perfect alternative; it has never been run at full capacity, and Croatian authorities have already raised transportation prices. They could halt deliveries at any time due to maintenance issues, raising concerns about the reliability of this supply route.

Hernádi emphasised that Lukoil, as Russia’s second-largest oil producer, holds a dominant position in the market. It has the ability to ship large quantities of oil quickly and has vast storage capacity, making it difficult to find a suitable replacement. Despite the challenges, Hernádi does not foresee a fuel crisis in Hungary, although a complete shutdown of the Druzhba pipeline would leave only one viable supply route.

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Hungary evicts thousands of refugees, including ethnic Hungarians, amid National Day celebrations

ukrainian transcarpathian refugees children war

As of 20 August, the Hungarian government is terminating aid for refugees housed across various accommodations, a change affecting thousands of Transcarpathian refugees, including many Hungarian Roma families. These refugees, who fled Ukraine at the start of the war, are now being forced out of their shelters across the country due to a government decree issued over the summer. Ironically, their dual citizenship might be the very obstacle to receiving further aid, which previously supported them through shelter and stipends.

Dozens of children evicted from temporary shelters

ukrainian transcarpathian refugees children war
Photo: MTI/Máthé Zoltán

At an emergency shelter in Ercsi, 110 people—half of them children—are being evicted from their temporary homes, Telex writes in its reports. One Roma man explained that returning to Ukraine was not an option, as men would be conscripted and sent to the war. Without viable alternatives, these families are left in a state of helplessness, with some contemplating heading to Budapest’s railway stations to sleep.

In June, the government announced two key changes:

  • Aid is now restricted to refugees from areas directly affected by military operations in Ukraine, effectively excluding those from regions like Transcarpathia.
  • From 21 August, all aid will be channelled exclusively through the Maltese Charity Service, cutting off other aid organisations.

Finding accommodation virtually impossible for refugees

The Transcarpathian refugees were given little time to respond. Many were unaware of deadlines or had their appeals rejected. With no funds to return home and housing discrimination rampant, finding alternative accommodation has become nearly impossible for these displaced families.

While the government justifies these cuts as a cost-saving measure, advocacy groups like the Hungarian Helsinki Committee warn of the severe consequences. They argue that

such sudden removal of support is inhumane, especially as Hungary presents itself as a protector of family values and an ally to ethnic Hungarians abroad.

For the government, they are Hungarian beyond the border, Roma in Hungary

The fate of those left behind remains uncertain. While the Maltese Charity Service will continue to support some refugees, those who have been excluded, many of whom are marginalised Hungarian Roma, are left to fend for themselves. The government’s actions appear to contradict its rhetoric of supporting ethnic Hungarians and families, casting doubt on its humanitarian commitments as thousands are pushed toward homelessness on the eve of Hungary’s National Day celebrations.

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Former Hungarian defence minister: Ukrainians are fighting heroically

Former Hungarian defence minister Ukrainians are fighting heroically (Copy)

“It is important for Hungary to strengthen Christian values and set an example to a decaying West,” István Simicskó, parliamentary group leader of the co-ruling Christian Democrats, said in connection with contested plans to add a cross to the pedestal of Budapest’s landmark second world war Liberation Monument on Gellert Hill, now being refurbished.

Speaking on public television M1 on Friday, Simicskó said “all civilisations are built on a basis of religion and once that foundation is destroyed the structure will collapse”. “Christian symbols must be revered, still, in Western Europe Christianity is waning and churches are being destroyed,” he added.

Simicskó said the planned crucifix was “also a symbol of freedom and victory”, adding that Byzantine emperors “used to erect crucifixes after battles won”.

In another interview, to public broadcaster Kossuth Rádió, Simicskó called for an early ceasefire and peace talks in the Russia-Ukraine war. He called for talks with Ukraine, Russia, the US and China, and insisted that “this is a proxy war in which players in the background are also important, not just the directly warring parties”.

Concerning the recent incursion by Ukrainian troops into Russian territory, Simicskó said “Ukrainians are fighting heroically but the two countries are not in the same weight-class and this [incursion] will not be a problem for the Russian army.”

Read also:

  • Hungarian government plans to evict Transcarpathian refugees from safe shelters – read more HERE
  • Thousands of Ukrainian children had summer holiday in Hungary – details in THIS article

Thousands of Ukrainian children had summer holiday in Hungary

Thousands of Ukrainian children had summer holiday in Hungary (Copy)

More than 11,000 Ukrainian children had the chance to spend their holidays in Hungary since the start of the war two and a half years ago, primarily thanks to charity organisations, the state secretary in charge of church and ethnic minority relations said on Wednesday.

Miklós Soltész, who is also the head of the National Humanitarian Coordination Council, visited a camp in Gyenesdiás, on Lake Balaton, organised for Ukrainian children who lost parents during the war. He said that a total of 11,400 children had spent holidays in Hungary, including over 4,000 this year.

Hungary has gone above and beyond to help those who suffered from the war but instead of providing support with weapons, ammunition and soldiers, “it has been using all means to work towards establishing peace”, Soltész said.

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Hungarian government plans to evict Transcarpathian refugees from safe shelters

ukrainian refugees transcarpathia

The Hungarian government plans to evict Transcarpathian refugees currently residing in temporary accommodations, according to a statement from the Hungarian Helsinki Committee released on Friday.

Government to deprive Transcarpathian refugees of safe havens

ukrainian refugees transcarpathia
Photo: MTI/Balogh Zoltán

The organisation highlighted a government decree from late June, which stipulates that, starting from 21 August, only those fleeing combat zones in Ukraine will be eligible for asylum. Since active fighting is currently limited to the Zhytomyr region west of Kyiv,

refugees from Transcarpathia, which has remained relatively peaceful, would no longer qualify for protected status.

This change primarily affects those who have been living in communal shelters in Hungary, many of whom are from Transcarpathia (a region in Ukraine with a Hungarian population of more than 100,000), Telex writes.

Refugees can check the government’s website for a list of areas that determine eligibility for asylum. According to the Hungarian Helsinki Committee, those currently in state-provided shelters who are no longer eligible have just six days to apply for an exception, citing “special circumstances,” to remain in their accommodations. These requests must be directed to Norbert Pál, the government commissioner.

Fears of separation of families

The organisation reports that many families have attempted to secure extensions, but only about 1/6th of the applicants have been successful. Apart from those granted extensions, only individuals over 65, people with disabilities, pregnant women, children, and one legal guardian per household may remain, potentially leading to the separation of families. The Hungarian Helsinki Committee plans to challenge the government’s rejections in court.

“We are representing these people because what is happening is clearly illegal. It is also unfair, inhumane, and morally indefensible,”

explained Zsolt Szekeres, the committee’s senior legal officer.

“The withdrawal of housing support is thoughtless, arbitrary, and could have devastating consequences for those affected. Many of them are children, Hungarian-speaking, who are now at risk of becoming homeless. This move also deprives them of the opportunity to attend school or kindergarten just ten days before the start of the academic year, as they will have no home to return to,” the Hungarian Helsinki Committee stated.

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Fidesz MEP demands the EU to take “immediate steps to counter Ukraine’s blackmail”

European Commission EU funds Hungary Ursula von der Leyen

Tamás Deutsch, the head of ruling’ Fidesz’s European parliamentary delegation, has called on the European Commission to “take immediate steps to counter Ukraine’s blackmail” of Hungary and Slovakia.

In an interview to public radio on Friday, Deutsch criticised the EC’s “inaction” concerning Ukrainian restrictions of the transit of Russian crude to Hungary and Slovakia, insisting that Ukraine was engaged in “blackmail” and in breach of its association agreement with the EU.

Noting that Fidesz’s EP group has sent a letter to the EC urging it to take action on the issue, Deutsch said Ukraine’s decision to restrict crude deliveries to two EU member states was “unprecedented”, as it seriously imperilled their energy security.

He said Ukraine had made it clear that its goal was to blackmail Slovakia and Hungary with the aim of getting them to change their pro-peace stance and join the “pro-war coalition backing the expansion of the Russia-Ukraine war with money, weapons and political support”.

Fidesz delegation leader Tamás Deutsch (Copy)
Photo: FB/Tamás Deutsch

Deutsch said it was “obvious” that Ukraine would “ignore even the issue of energy security if it serves its political goals”. Also, the country was prepared to violate the association agreement with the EU “because the European Commission thinks it has to stand by Ukraine politically under all circumstances”.

Regarding Ukraine, “pro-war political interests supersede all else”, he said, insisting that the EC had failed to fulfil even its most basic obligations if it led to bolstering pro-peace efforts, and was even prepared to “look the other way” when it came to “political blackmail”.

Zelensky Orbán Kyiv
Orbán and Zelensky in Kyiv in July. Photo: FB/Orbán

Brussels’ decisions, Deutsch said, were dictated by “an ideological bias that ignores the law”. He said the EC would take action once Ukraine started taking steps that directly went against the economic, political and security interests of western European countries, adding that such a scenario was “easy to imagine as Ukraine becomes emboldened”.

Read also:

  • EU countries consider reinstating border controls with Hungary over security concerns – read more HERE
  • Orbán family associate develops massive new residential project in Budapest – details in THIS article

Ukraine’s Lukoil import ban political blackmail, says Orbán’s Fidesz

Zelensky Ukraine Orbán

The leader of the European parliamentary group of the ruling Fidesz-Christian Democrats, Tamás Deutsch, and MEP Kinga Gal on Tuesday sent a letter to the European Commission, calling on the body to stand up against “Ukrainian political blackmail” that they said had put the energy security of EU member states at risk.

Based on official Ukrainian statements, the country’ decision to stop delivering crude to Hungary and Slovakia was an attempt to strong-arm those countries into changing their pro-peace stance on the war, the letter said.

At the end of July, Ukraine ramped up its sanctions on Russian oil company Lukoil, and stopped deliveries of Russian crude to Slovakia and Hungary through the Druzhba pipeline as a result.

Zelensky did not like PM Orbán's idea about the ceasefire peace summit
Orbán and Zelensky in Kyiv in July. Source: FB/Orbán

Deutsch and Gál called on the EC to take the necessary steps so that Ukraine scraps the “unacceptable and unlawful” measures that gravely endangered the energy security of the countries, which were lacking alternative routes to purchase oil. At the same time, they said the step also ran afoul of the EU-Ukraine Association Agreement’s regulations on transit deliveries.

Political blackmail from Ukraine?

It was especially concerning that certain Ukrainian statements had shown that the measure was aiming to force Hungary and Slovakia to change its pro-peace stance, and so Ukrainian sources “have essentially admitted this was political blackmail”, they said.

In such a situation, the EC should be protecting the interests of member states “as a matter of fact”, and “should force the third country to follow the law”, the letter said. The European Commission’s steps, however, had been “inadequate, even permissive in the face of Ukraine’s blackmail”, they said.

Read also:

  • Hungary slams Ukraine for Lukoil ban only because Russia asked them to? – read more HERE
  • Fidesz: Non-EU Ukraine is threatening the energy security of two EU member states

Fidesz: Non-EU Ukraine is threatening the energy security of two EU member states

Ukraine Hungarians support

Tamás Menczer, the Fidesz communications director, said in a video posted on social media on Monday that the only thing those striving for peace can count on is getting blackmailed.

The ruling party Fidesz official said non-EU Ukraine is threatening the energy security of two EU member states, Hungary and Slovakia, notwithstanding the EU association agreement by which Ukraine is bound. The official added that the European Commission, as the guardian of the treaties, should take action to protect member states and ensure countries such as Ukraine uphold the agreement.

Yet Brussels was doing very little about it, and it was even possible that the commission’s president, Ursula von der Leyen, had suggested the oil blockade, he said.

“We’ll use all means at our disposal to defend ourselves,” he said, noting regulatory and legal tools, a consultation procedure, or arbitration as possible avenues.

Menczer also referred to “technical possibilities”, adding that Hungarian oil and gas company MOL “is investigating these”.

He said Hungary had no intention of blackmailing Ukraine. “The contracts and agreements that we enter into are something we want to stick to,” he said. At the same time, he warned that much of the energy that Ukraine receives “passes through Hungary”.

As we wrote earlier, Hungary, Slovakia could restrict electricity supplies to Ukraine, details HERE.

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Hungary, Slovakia could restrict electricity supplies to Ukraine

Energy electricity MAVIR consumption (Copy)

Hungary and Slovakia have raised the idea of restricting or even suspending electricity supplies to Ukraine if it fails to resume the transit of oil to the former two countries, public broadcaster M1 reported on Friday, referring to talks between the two countries.

Experts asked by M1 have said that such a move was “theoretically” possible, through coordination between Hungary and Slovakia.

Olivér Hortay, senior researcher at Századvég, said Ukraine heavily relied on imported electricity, adding that the power supply received through Hungary “has on many occasions accounted for over 40-42 percent” of Ukraine’s domestic demand. “Cutting such a large amount off would seriously impact Ukraine’s supplies,” he added.

Read also:

  • Reuters informers: Ukraine may cease oil transit to Hungary, Slovakia in August – read more HERE

No mercy from Ukraine: They insist on restricting Russian oil transport to Hungary, Slovakia – UPDATED

Russian oil transport ban Lukoil

News broke in mid-July about an end-June Ukrainian decree banning Russian Lukoil from transporting crude oil using Ukrainian pipelines. Some experts said the step endangers supply in Hungary and Slovakia considerably. Ukraine says the opposite, and they cleared that in a harsh message to PM Robert Fico, claiming that the European Commission is on their side. Here’s the next episode of the Russian oil conflict.

No ‘mercy’ from Ukraine in Russian oil conflict

Ukraine’s prime minister, Denys Shmyhal, shared the harsh reaction of the Ukrainian government on an alleged Slovakian ‘threat’ on Telegram. He suggested that those countries that would like to keep up Russian transport to Europe would support the aggressor, and that is unacceptable. Before, Bratislava said they would halt diesel export to Ukraine provided Kyiv does not abolish their Lukoil sanction.

Ukraine announced the ban on Lukoil in mid-July and added they would not like to support the Russian machine by letting through crude for a company that is one of the biggest supporters of Putin’s invasion.

Zelensky Orbán Kyiv Russian oil transport
Orbán and Zelensky in Kyiv. Photo: FB/Orbán

The Hungarian and Slovakian governments were outraged, saying that the unilateral Ukrainian decision endangers both countries’ oil and energy supply. Some experts like Ilona Gizińska, a senior analyst of the Centre for Eastern Studies, told Politico that Hungarians should calculate with skyrocketing fuel and energy prices, but experts say she was not right.

The European Commission supports Ukraine

G7.hu wrote that the ban on Lukoil’s transport does not mean there would be fewer molecules in the Ukrainian pipeline, coming to Hungary and Slovakia. It only means that Lukoil is unable to label its crude as Lukoil. However, another company can substitute it in Ukraine, as it probably already happened, and business may continue as usual. For example, Hungarian gas and oil giant MOL having refineries in Bratislava and Százhalombatta and processing Russian oil, has not even said a word concerning the issue.

MOL Campus at night Russian oil
The MOL Tower in Budapest. They process Russian oil. Photo: FB/MOL Campus

Meanwhile, concerning the government’s excess profit taxes, MOL CEO Zsolt Hernádi slammed the Orbán cabinet in an opinion article. “We pay more for nothing. Isn’t that familiar somehow? Just like in the Communism. Back to the future, gentlemen”, he concluded his article published in the government-close Mandiner.

That is why Ukraine says their step does not endanger Slovakia and Hungary. And that is why they replied so harshly and added that the European Commission supported them. Hungary and Slovakia have jointly initiated a consultation procedure with the European Union against Ukraine, but 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.

Ukraine’s stoppage of crude deliveries likely recommended by Brussels, says the Orbán cabinet

Tamás Menczer, the communications director of the ruling Fidesz-Christian Democrats, on Thursday said there was “a good chance” that the move to halt the transit of significant volumes of Russian crude oil to Hungary and Slovakia had been recommended to Ukraine by Brussels “or even [European Commission President] Ursula von der Leyen herself”. Menczer told public broadcaster Kossuth Rádió and news channel M1 that by stopping crude deliveries,

Ukraine was endangering Hungary’s and Slovakia’s energy security, which was in breach of its association agreement with the European Union.

He said the European Commission should take steps in the interest of protecting the member states impacted by the move and “safeguard” the implementation of the agreement, “yet nothing is happening”.

“We have to be increasingly firm in saying what we were saying at the beginning, which is that there’s a good chance that it was Brussels or [EC President] Ursula von der Leyen herself who had recommended to Ukraine that it should cut off oil deliveries,” Menczer said.

Blackmailing Ukraine?

He said Hungary would use every means possible to protect itself, “but it wouldn’t hurt if for once the commission acted in accordance with the regulations and in common sense, but it looks like we can’t count on this.”

Menczer said there were both legal and technical options for addressing the situation. Underlining that Hungary did not want to “blackmail Ukraine back”, he said it is a fact that a significant amount of the energy Ukraine uses is delivered to the country via Hungary.

Asked about the fine the European Court of Justice instructed Hungary to pay for refusing to implement several EU migration rules, Menczer said the timing of the fine was not coincidental, adding that Hungary’s commitment to peace could have been one of the reasons behind it.

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Featured image: depositphotos.com

Szijjártó: was the Russian oil delivery ban requested from Brussels?

szijjártó east west cooperation

Hungary and Slovakia called for action by the European Commission last week regarding Ukraine’s decision to restrict crude oil deliveries, the minister of foreign affairs and trade said on Facebook on Tuesday, asking: “Why has the EC not taken any steps for more than a week?”

Szijjártó calls on the European Commission

“Brussels is silent”, even though the measure is putting the energy security of two member states at risk, and is “a crystal clear violation of the EU-Ukraine Association Agreement,” Péter Szijjártó said.

Brussels is either too weak to push through the interests of two member states against a membership candidate, “or the whole idea was conceived in Brussels rather than Ukraine, and it is the European Commission, rather than the Ukrainian government, that wants to blackmail two pro-peace countries opposing weapons deliveries,” he said.

Szijjártó said: “The European Commission and personally Ursula von der Leyen must immediately show their true colours: was the oil delivery ban requested from Brussels? If it wasn’t, why has the EC not taken action for over a week?”

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EU diplomats fuming: Hungary appeals to Brussels for Russian oil assistance

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

Due to a sanction imposed at the end of June, Ukraine halted Russian oil supplies to Hungary. This decision affected Slovakia as well, prompting both countries to seek help from the European Commission to ensure the uninterrupted flow of Russian oil. However, the European Commission turned down the request, which diplomats found outrageous.

The European Commission does not support Hungary

RTL reports that the European Commission has decided not to support Hungary and Slovakia in the ongoing Lukoil case, making a swift resolution of the dispute over Russian oil supplies, suspended by Ukraine, unlikely. During a recent meeting of EU trade representatives, 11 member states supported the Commission’s stance to refrain from taking immediate action on the Hungarian-Slovak initiative. Notably, no EU member state sided with Budapest and Bratislava in this matter.

Hungarian FM: Ukraine is blackmailing Hungary

Ukrainian sanctions imposed at the end of June have halted Russian Lukoil’s oil supplies to Hungary’s MOL via Ukraine, as Lukoil cannot lease the necessary pipeline network for transit. In response, Hungary‘s Foreign Minister Péter Szijjártó threatened to block a EUR 6.5 billion arms transfer compensation from the European Peace Facility unless Lukoil is allowed to resume its shipments. Ukrainian presidential adviser Mykhailo Podolyak dismissed claims of blackmail, arguing that Hungary and Slovakia demand concessions for Russia while failing to support peace in Ukraine. He urged them to appeal to Moscow to cease attacks on Ukrainian energy infrastructure.

MOL Campus at night Russian oil
The MOL Tower in Budapest. Photo: FB/MOL Campus

Meanwhile, European Commission spokesman Olof Gill indicated that the restriction on Russian oil supplies through Lukoil has no immediate impact on the EU’s oil supply, as Hungary and Slovakia have adequate reserves and continue receiving Russian oil via the Friendship pipeline.

EU diplomats fuming over Hungary’s request for Russian oil

As Politico reports, EU diplomats have criticised Hungary and Slovakia for seeking Brussels’ assistance with the Lukoil issue. Despite having over two years since Russia’s full-scale invasion of Ukraine to reduce their dependency on Russian energy, both countries have made little effort to divest from Russian oil.

Now, they are appealing to the EU to honour the 2014 trade agreement with Kyiv and asking the European Commission to intervene on their behalf. EU officials find the request frustrating, noting that other member states have successfully replaced Russian imports, while Hungary and Slovakia, who have been busy circumventing EU sanctions, continue to rely heavily on Russian oil.

Meanwhile, European Commission spokesman Olof Gill indicated that the restriction on Russian oil supplies through Lukoil has no immediate impact on the EU’s oil supply, as Hungary and Slovakia have adequate reserves and continue receiving oil via the Friendship pipeline.

oil and gas pipeline Russian oil
Source: depositphoto.com

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Featured image: depositphoto.com

Várhelyi: EU enlargement ‘investment in peace, stability, prosperity’

Hungarian commissioner Várhelyi central europe EU enlargement

The EU enlargement policy is “a clear and necessary geostrategic investment in our long-term peace, stability, prosperity and security,” Olivér Várhelyi, EU commissioner for neighbourhood policy and enlargement, told a conference of representatives of EU affairs committees of European parliaments in Budapest on Monday.

Várhelyi talks about EU enlargement

Concerning the candidates, Várhelyi said Ukraine, despite “the current times of challenge” had made progress in its required reforms. He noted that Ukraine was expected to show commitment to the process and should go on with its reforms. He also added that in 2024 the EU was committed to help Ukraine with a total 16 billion euros if that country met the community’s requirements.

Concerning Moldova, Várhelyi noted that the EU had entered into accession talks with that country last month, and was helping Moldova with an investment of 1.6 million euros to refurbish key road infrastructure and the green and digital transition.

Georgia was given candidate status last December, and made a commitment to promote the rule of law and fundamental rights, however, that country then passed “controversial” legislation with special regard to a law concerning the “transparency of foreign influence”, Várhelyi said, adding that the contested law indicated “a step back from candidate status”.

EU enlargement in the Western Balkans was a top priority for the Hungarian EU presidency, the commissioner said, adding that the EU “cannot be complete without that region”. He urged that the EU should open the competitiveness and inclusive growth chapters in its talks with Serbia, and noted the Serbian government’s commitment to introducing EU reforms. He also said it was of “vital importance” that Serbia should indicated its strategic directions to the EU “in the current geopolitical context”.

Concerning Albania, he said the country was making progress with its judicial reform, but added that such areas as private ownership and the rule of law required further efforts.

North Macedonia should accelerate implementation of its accession-related reforms, Várhelyi said, and noted that next steps in the process required consitutional amendments.

Bosnia and Herzegovina has completed all eight requirements the European Commission defined in October, the commissioner said, adding that the framework for the talks was being prepared.

Integration of all new entrants could be promoted by a new “growth plan”, he said, adding that the mechanism could offer candidates such facilities as access to the common regional market even before they are granted full membership in the EU

The EU cannot be successful without new entrants and their national parliaments, the commissioner said, adding that the EU currently had 10 aspirants that “believe in the EU offering them long term peace, security, stability, welfare and prosperity.”

Concerning the candidates, Várhelyi said Ukraine, despite “the current times of challenge” had made progress in its required reforms. He noted that Ukraine was expected to show commitment to the process and should go on with its reforms. He also added that in 2024 the EU was committed to help Ukraine with a total 16 billion euros if that country met the community’s requirements.

Concerning Moldova, Várhelyi noted that the EU had entered into accession talks with that country last month, and was helping Moldova with an investment of 1.6 million euros to refurbish key road infrastructure and the green and digital transition.

Georgia was given candidate status last December, and made a commitment to promote the rule of law and fundamental rights, however, that country then passed “controversial” legislation with special regard to a law concerning the “transparency of foreign influence”, Várhelyi said, adding that the contested law indicated “a step back from candidate status”.

EU enlargement in the Western Balkans was a top priority for the Hungarian EU presidency, the commissioner said, adding that the EU “cannot be complete without that region”. He urged that the EU should open the competitiveness and inclusive growth chapters in its talks with Serbia, and noted the Serbian government’s commitment to introducing EU reforms. He also said it was of “vital importance” that Serbia should indicated its strategic directions to the EU “in the current geopolitical context”.

Concerning Albania, he said the country was making progress with its judicial reform, but added that such areas as private ownership and the rule of law required further efforts.

North Macedonia should accelerate implementation of its accession-related reforms, Várhelyi said, and noted that next steps in the process required consitutional amendments.

Bosnia and Herzegovina has completed all eight requirements the European Commission defined in October, the commissioner said, adding that the framework for the talks was being prepared.

Integration of all new entrants could be promoted by a new “growth plan”, he said, adding that the mechanism could offer candidates such facilities as access to the common regional market even before they are granted full membership in the EU.

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Hungary may receive Russian oil via Croatia, but there’s a huge problem

MOL refinery in Százhalombatta russian oil

A legal loophole could allow Russian oil to come to Hungary via Croatia. However, that amount will not be able to serve two refineries.

Russian oil may come to Hungary via Croatia

MOL refinery in Százhalombatta russian oil
Photo: FB

Ukraine may eventually block all Russian oil supplies through the Friendship II pipeline. In preparation for this, three Russian oil companies have already started to divert their supplies to seaports, as Daily News Hungary reported.

According to Portfolio, a “legal loophole” can be exploited for these to reach Hungary and Slovakia via the Adriatic pipeline from Croatia. However, there is a problem: the pipeline has a much more limited capacity than the two countries need.

Tamás Pletser, an analyst at Erste Befektetési Plc., told RTL News that “if the supply through the Friendship pipeline stops, it means that in the short term, the MOL Group will be in a difficult situation, because the Adriatic pipeline can supply oil from the sea, but it cannot fully meet the demand of the company’s two refineries”.

According to the Hungarian News Agency (MTI), Slovakia said on Friday it had proposed a technical solution to Ukraine to restore oil supplies to refineries in Slovakia and Hungary, following warnings that a partial shutdown could lead to fuel shortages as early as early September.

As we reported, a Ukrainian sanction that came into force at the end of June has halted Russian Lukoil’s oil supplies to MOL via Ukraine, as the Russian company cannot lease the Ukrainian pipeline network for transit.

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Orbán: Peace won’t be achieved by Ukraine or Russia; it has to come from outside

orbán tusványos festival

If it were up to Ukraine and Russia, there would never be peace, so peace can only come from the outside, Prime Minister Viktor Orbán said in his address at the Bálványos Summer University in Baile Tusnad, Romania on Saturday.

orbán tusványos festival
Photo: MTI/Veres Nándor

Both sides are taking brutal losses, yet they don’t want to reach a settlement, Orbán said, explaining that this was because both Ukraine and Russia believed that they could win and were fuelled by their own “perceived or real truth”.

Orbán said the Ukrainians saw the war as a Russian invasion that violated international law and their territorial sovereignty, and that they were defending themselves and fighting a war or independence.

The Russians, on the other hand, believed that there had been “serious NATO military developments in Ukraine”, that the country had been promised NATO membership, and they did not want to see either NATO troops or NATO weapons on the Russia-Ukraine border, he said. So, he said, Russia believed it had a right to self-defence and that the war had been provoked.

“So everyone has some kind of perceived or real truth, and neither side will give up the war,” the prime minister said.

“This is a straight path to escalation,” he said, stressing that there would be no peace if it were left up to the two warring sides. “Peace can only come from the outside,” Orbán said.

Orbán: ‘Time is on side of peace policy’

Addressing the Bálványos Summer University in Baile Tusnad, Romania, on Saturday, Prime Minister Viktor Orbán said that “time is on the side of the peace policy”.

“Trump ante portas,” the prime minister said, referring to the upcoming US presidential election. He said that if Europe did not shift to a “peace policy” by the time of the November election, it would have to do so after Trump’s victory, “admitting defeat” and bearing the political consequences alone.

Orbán noted that the European Union’s founding treaty included the words “the Union’s aim is to promote peace”.

He said Brussels “doesn’t like it when we call what they do a pro-war policy, because they think they’re supporting the war in the interest of peace”.

He added that since the start of the Hungarian “peace mission”, the US secretary of state had spoken with Russia’s foreign minister, and the Swiss foreign minister had also held talks with him.

Ukrainian President Volodymyr Zelensky, he noted, had called Donald Trump, the former US president and Republican presidential candidate, and the Ukrainian foreign minister had visited Beijing.

“Although slowly, but we’re moving away from a European pro-war policy in the direction of a pro-peace policy,” Orbán added.

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Reuters informers: Ukraine may cease oil transit to Hungary, Slovakia in August

Russian oil transit MOL

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.

Robert Fico Viktor Orbán new ally oil transit
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.

gulyás Strong NATO in Hungary's interest oil transit
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.

petrol station fuel money oil transit
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.

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Hungarian minister: Ukraine ‘blackmailing’ Hungary and pro-peace states

Zelensky Orbán Kyiv ukraine

By halting the transit of crude oil to Hungary and Slovakia, Ukraine is blackmailing the countries that consistently speak out in favour of an immediate ceasefire and peace talks, the head of the Prime Minister’s Office said on Friday.

Speaking at a government press briefing, Gergely Gulyás said Ukraine’s “blackmail” of Hungary and Slovakia for their pro-peace positions was “unfair” and in violation of its agreements with the European Union.

He said this posed a serious danger to the security of Hungary’s and Slovakia’s energy supply. “There’s no need to panic right now because our reserves are at a high level,” Gulyás said, adding however that the situation must be resolved by September.

Ukraine oil delivery curbs breach EU agreement

Ukrainian restrictions on crude deliveries breach numerous provisions of the EU association agreement, János Bóka, the EU affairs minister, told a government news briefing on Friday.

When it comes to cases requiring urgent measures, the European Commission will launch a consultation process with Ukraine within three days at the initiative of member states, though arbitration can also be initiated in the absence of a satisfactory outcome, the minister said.

Hungary is also examining whether the crude delivery restrictions breach WTO and Energy Charter rules, Bóka added.

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