TASS news agency quoted Hungarian Foreign Minister Peter Szijjarto as saying that Moscow and Budapest are trying to resume Russian oil supplies to Hungary after transportation through Ukrainian territory was blocked.
In June, Kiev stepped up sanctions on Russian oil company Lukoil by banning the company from using Ukraine as a transit country for energy supplies.
Lukoil won a five-year contract to export about 4 million tons of oil per year with Hungarian energy company Mol in 2019.
Russia and Hungary are studying an effective solution to the problem of oil transportation - Foreign Minister Szijjarto told reporters on the sidelines of a United Nations conference in New York immediately after meeting with his Russian counterpart, Foreign Minister Sergei. Lavrov.
Foreign Minister Szijjarto said: “We discussed the issue of safe gas and oil supplies to Hungary from Russia. Regarding oil supplies, a new legal situation has now arisen in Ukraine, forcing Lukoil to temporarily suspend supplies to Hungary.”
Kiev introduced sanctions against Lukoil in 2018, prohibiting the company from divesting its business in Ukraine, as well as prohibiting commercial activities and participation in privatization or leasing of state assets .
This energy company used to supply Russian crude oil to Hungary through the southern branch of the Druzhba oil pipeline running through Ukraine. Kiev's latest move has prevented Lukoil from supplying oil to the EU country.
Foreign Minister Szijjarto added that Moscow and Budapest are working on a legal solution that would allow the two countries to resume oil deliveries, stressing that Russian crude is important for Hungary's energy security.
“We also discussed the issue of gas supply, which is very relevant for Hungary. Gas supplied through the Turkish Stream pipeline is a reliable source of energy for us,” said Hungary's top diplomat.
The EU banned member states from importing Russian crude oil on December 5, 2022, as part of a sixth package of sanctions related to Russia's military campaign in Ukraine . However, pipeline supplies are exempt from sanctions. Therefore, Hungary, along with Slovakia and the Czech Republic, continue to import oil from Russia.
In June 2023, the EU passed the 11th sanctions package, banning oil shipments from Russia along the northern branch of the Druzhba pipeline to Germany and Poland. Oil supplies along the southern branch of the Druzhba to Hungary are not sanctioned.
