Hungary Seeks Legal Solution to Restore Russian Oil Supply

After Ukraine imposed new sanctions against Russian oil giant Lukoil in June, blocking the Friendship oil pipeline, Hungary is now working with Russia to resolve the issue and restore oil supplies writes Világgazdaság based on oilprice.com. Despite t

By: hungarytoday.hu

Jul 19 2024
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Hungary Seeks Legal Solution t

Despite the EU not banning pipeline crude imports from Russia, Ukraine’s stricter sanctions have effectively halted Lukoil’s oil deliveries to Hungary via the southern leg of the Friendship pipeline, which passes through Ukraine.

Lukoil’s deliveries to Slovakia have also been affected.

Hungarian Foreign Minister Péter Szijjártó, after meeting with his Russian counterpart, Sergey Lavrov on the sidelines of a UN meeting in New York, confirmed that Lukoil is not currently supplying Hungary but emphasized efforts to find a legal solution to resume the oil flow.

Hungary, led by Prime Minister Viktor Orbán, seeks to maintain friendly ties with Russia, despite EU objections, and views Russian oil as vital for its energy security.

In May, Fitch Ratings reported that Hungarian oil company MOL plans to source around 40% of its supplies from non-Russian sources this year and aims to replace all Russian supplies by 2026. However, MOL has not ruled out using Russian oil in the future, contingent on market and regulatory conditions. The company declined to comment on the current situation.

The situation highlights Hungary’s balancing act between maintaining EU solidarity and securing its energy needs through cooperation with Russia. Péter Szijjártó’s statements underline Hungary’s intent to restore the supply of Russian oil as quickly as possible to ensure energy stability.

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