Oil – Ukraine turns off the tap – 2024-07-22 22:00:59

Oil – Ukraine turns off the tap
 – 2024-07-22 22:00:59

Ukraine has imposed sanctions on Lukoil, which, according to Kiev, the EU was unable to impose. Foreign Trade Minister Péter Szijjártó speaks of a serious long-term threat to the security of oil supplies to Hungary and Slovakia.

“We can still solve the problem temporarily, but it will no longer work in the medium term,” Szijjártó admitted at a press conference on the sensitive issue before the weekend. Naturally, the foreign minister reminded journalists that Hungary and Slovakia had been granted an immediate exemption from the Russian oil embargo when the 6th package of sanctions against Russia was passed. “There are no restrictions from the EU regarding these oil deliveries via the Druzhba route.”

Kyiv terminates correct cooperation on oil transit

Until now, transit via Ukraine has worked because proper cooperation in energy matters has been practiced between the neighboring countries. Since the outbreak of war, Hungary has repeatedly helped Ukraine to ensure the security of supply of the Ukrainian energy network under the most difficult conditions. Szijjártó described a change in the law in Kiev as a “bolt from the blue”, as a result of which Lukoil is no longer allowed to transport oil via Ukraine. (Specifically, Ukraine has prohibited Lukoil from using Ukrainian capacities.)

Hungary and Slovakia have so far imported around 2 million tonnes of crude oil from Lukoil via Ukraine. This corresponds to around a third of total oil imports. “We have signalled to the Ukrainian authorities that this is an incomprehensible, unacceptable and unfriendly decision on their part. Efforts were evidently made to correct the critical situation that had arisen, but somehow these efforts came to nothing,” the minister noted of the latest conflict with the eastern neighbour. Szijjártó will raise the issue at the foreign ministers’ meeting in Brussels on Monday. “It is strange that a country that is pushing for accession to the EU is seriously endangering the energy supply of two member states.”

Who feeds the Russian war machine?

The usually well-informed Brussels political magazine Politico, which has been more of a propaganda rag on Hungarian affairs for some time, immediately had “experts” on hand who predicted that Hungary would face an energy crisis within a few weeks. What is interesting about this is that the Hungary expert from a Polish think tank, which itself is considered to be close to the state according to Wikipedia, is quoted. “Within weeks” – the Centre for Eastern Studies in Warsaw estimates – energy prices will skyrocket and Hungary will suffer electricity shortages if the government in Budapest does not find a solution by then. (Foreign Minister Szijjártó said, of course, that the solution lies in Kiev.)

In the article, Politico quotes a Ukrainian MP responsible for energy issues as saying that Kyiv has finally “taken the issue of Russia sanctions into its own hands” after Hungary and Slovakia have not tried to decouple from the Russians since 2022. They have been waiting for “real” sanctions against Russian oil for more than two years.

“We are looking for a solution. But honestly, since we did not cause the problem, the Ukrainians must solve it. I can only hope that they will do so very soon.”

On the ongoing issue of sanctions, Péter Szijjártó also referred on Friday to the flourishing trade between the USA and Russia in the supply of uranium. “Russia is the USA’s largest supplier in this area. For two and a half years we have had to listen to people saying that by buying natural gas and oil from Russia we are feeding the Russian war machine. What are the Americans doing then?” asked the foreign minister, calling for more restraint on the part of those who are working to mislead public opinion.

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