Hungary’s prime minister ruled outJ Victor Urban The issue of a European embargo on Russian oil will be discussed at a summit of European leaders next week, in a new blow to the European Union’s efforts to win support for a new sanctions package once morest Russia over the invasion of Ukraine.
“Solutions must precede sanctions.”
Hungary, which is currently in talks with the European Commission, “is not in a position to accept the sixth package of sanctions as long as the negotiations do not succeed in resolving all the outstanding issues,” Orban wrote in a letter he addressed Monday to European Council President Charles Michel, the contents of which were quoted by the newspaper Financial Times Britain in its Wednesday edition. “Solutions must precede sanctions,” Orban added.
He said, “Given the gravity of the issues that are still outstanding, it is unlikely that a complete solution will be found before the extraordinary summit” of the heads of state and government of the 27 EU members scheduled for May 30 and 31 in Brussels.
In his letter, Orban warned that proposed sanctions once morest Russia might cause “serious supply problems” for Hungary and “undermine its vital energy security interests”, leading to a “price shock” to the country’s households and economy.
A deal ‘highly unlikely’
On Tuesday, Paris and Berlin considered that it is still possible to bypass Hungary’s obstruction of imposing a European embargo on Russian oil in the coming days, in a position that completely contradicts the statement of the Hungarian Prime Minister, who believes that an agreement is “highly unlikely.”
Backfire
Orban added, “I am convinced that discussing the sanctions package at the level of presidents in the absence of consensus will be counterproductive. It will only serve to illuminate our internal divisions without providing a realistic opportunity to resolve differences,” suggesting “not to consider this file” during the European Council summit. “Preserving the unity of the European Union must remain our priority,” he added.
Serious supply disruptions
He stressed that the proposed oil embargo “will immediately lead to serious supply disruptions to Hungary” and raise prices “by regarding 55 to 60 percent.” The Prime Minister asserts that his country is still “largely dependent on Russian energy imports” even if “Russia’s share of oil imports decreased from more than 90% in 2010 to 64% in 2021.”
Quick shift towards clean energies
Orban added in his message, “The gradual dispensation of Russian oil is impossible without a complete restructuring of the capabilities of our refineries, and it requires the expansion of energy infrastructure, increased investment in it, and a rapid shift towards clean energies.”
Hungary, which considered the two-year exemption proposal to implement the oil embargo submitted to Hungary, Slovakia and the Czech Republic insufficient, requested at least four years and regarding 800 million euros in European funding to strengthen its refineries and increase the capacity of the Adria pipeline that comes from Croatia.
In an effort to reduce European dependence on Russian fossil fuels. The executive arm wants to speed up the implementation of structured strategies to accelerate the green transformation of the European Union. European Commission President Ursula von der Leyen said countries would also be obligated to add solar panels to commercial and public buildings from 2025, and to new homes from 2029 under the proposals. The European Commission also announced a €210 billion plan to end its dependence on Russian fossil fuels within five years and speed up its transition to green energy.
Orban indicated in his letter that the European Union “has not addressed Hungary’s concerns because there is no European funding in sight for the countries concerned,” referring to countries that depend on Russian oil, such as Slovakia and the Czech Republic.
Charles Michel is confident in the European Union’s ability to reach an agreement
In a related matter, European Council President Charles Michel said Wednesday that he remains “confident” in the European Union’s ability to reach an agreement on a European embargo on Russian oil by Monday’s European Council session, despite Hungary’s obstruction. “I am still confident in our ability to resolve the issue before the European Council convenes” Monday and Tuesday in Brussels, Michel said during a visit to Sweden.
Is an agreement still possible?
And the President of the European Commission, Ursula von der Leyen, confirmed on Tuesday that she “hopes” that an agreement will be reached “within days”, while she indicated through “Euronews” that this may take “weeks”. For its part, the French presidency announced Tuesday that an agreement is still possible “in the coming days” to bypass Hungary’s reservations regarding imposing a European embargo on Russian oil, in a declaration that contradicts Orban’s statement. “There is still the possibility in the coming days to lift the Hungarian veto,” the Elysee Palace said, noting that “various options are on the table to get out of this impasse.”
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