Hungary found a way to unblock the transit of Lukoil oil through Ukraine
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Economics
Publication date

Hungary found a way to unblock the transit of Lukoil oil through Ukraine

Oil pipeline "Druzhba"
Source:  Index

The Hungarian authorities are conducting negotiations on unblocking the transit of Russian Lukoil oil through the territory of Ukraine.

Points of attention

  • Hungary is engaged in negotiations with Ukraine to transfer the transit of Russian Lukoil oil to the eastern border, potentially increasing oil prices by $1.5 per barrel.
  • The Hungarian government accuses the European Commission, not Ukraine, of making the decision to block the oil transit, highlighting concerns about energy security and violations of the Association Agreement between Ukraine and the EU.
  • Péter Szijjártó, the Hungarian Minister of Foreign Affairs, criticizes the European Commission's alleged inaction and demands transparency from the EU regarding the oil transit issue.
  • Hungary proposes unblocking the oil transit by shifting it to the eastern border of Ukraine, with indications that Ukraine may be open to this option to resolve the dispute.
  • The ongoing efforts by Hungary in the international arena reflect a proactive approach towards resolving the stalemate in the Lukoil oil transit through Ukraine, emphasizing the importance of cooperation and negotiation.

What is known about Hungary's attempts to unblock the transit of Lukoil oil through Ukraine

According to the head of the Hungarian Prime Minister Viktor Orban's office, Gergely Gulyash, the proposal to transfer the place of transit of Russian oil from the western border of Ukraine to the eastern one is being discussed.

If Ukraine agrees to such a step, the Hungarian MOL will handle the transit, and the price of oil will increase by approximately 1.5 dollars per barrel.

Hungary offers Ukraine the option of unblocking the transit of Russian oil
Oil pipeline

Gulyash said that the Ukrainian side does not seem to be against such an option.

What is known about Hungary's accusations of blocking the transit of Russian oil through Ukraine

The head of the Ministry of Foreign Affairs of Hungary, Peter Szijjarto, began to claim that it was the European Union, not Ukraine, who made a decision to ban the transit of oil of the Russian company "Lukoil" through Ukrainian territory.

The Hungarian diplomat complained that after complaints from Budapest and Bratislava, "the European Commission did nothing", despite, they say, "a threat to the energy security of two EU member states" and a "flagrant violation of the Association Agreement between Ukraine and the EU".

Against the background of recent events, Viktor Orban's henchman came up with two "explanations" at once.

One of them, as stated by Peter Sijarto, may be the "weakness" of the European Commission, which is allegedly unable to "defend the fundamental interests of the two member states."

The second — "it's Brussels, not Kyiv, invented all this; it's the European Commission, not the Ukrainian government, that wanted to blackmail two countries that stand for peace and refuse to transfer weapons," wrote the head of the Hungarian Foreign Ministry.

Moreover, Peter Szijjarto began to demand that the European Commission and President Ursula von der Leyen personally and immediately tell the truth.

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