The European Commission is currently awaiting further information from Slovakia and Hungary regarding their oil supply situation following Ukraine’s decision to place sanctions on Russian oil firm Lukoil. These sanctions have prompted complaints from the two countries about the potential impact on their oil supply. Despite concerns raised by Hungary and Slovakia, the EU executive has stated that there is “no immediate risk” of oil shortages in either country. The commission is currently assessing the situation and waiting for more details from Slovakia and Hungary before taking further action.
Although the EU as a whole has been working to diversify its oil and gas supplies away from Russia, Hungary and Slovakia have continued to receive oil from Russia via the Druzhba pipeline. Ukraine’s decision to impose sanctions on Lukoil has raised concerns about the impact on the oil transit operations to the two countries. The meeting between trade commissioner Valdis Dombrovskis and Ukrainian Prime Minister Denys Shmyhal discussed the matter in detail. Shmyhal described the actions of Hungary and Slovakia as “highly politicized and manipulative” and expressed gratitude for the EC’s policy of limiting Russian energy resources and supporting EU countries that are actively diversifying their energy flows.
The EU executive believes that there is no immediate need for urgent consultations at this time, as preliminary analysis suggests that alternative suppliers have replaced missing volumes from Lukoil through the same pipeline. While the situation is being monitored for immediate security of supply concerns, a longer-term analysis has not been carried out. Only a small percentage of Europe’s crude oil supplies currently come from Russia, with an alternative pipeline route through Croatia having sufficient capacity to meet the needs of Slovakia and Hungary. The two countries had written to the EU executive requesting intervention based on the EU-Ukraine Association Agreement, signed a decade ago to strengthen political and trade ties.
The dispute between Slovakia, Hungary, and Ukraine comes at a time of increasing diplomatic tensions between Brussels and Budapest. Hungary’s foreign minister Péter Szíjjártó has questioned the EU executive’s response to the oil supply issue, suggesting that Brussels may be either weak or using the situation to pressure the two countries. Hungary has previously used its veto in the EU Council to delay sanctions against Russia and block EU aid to Ukraine. Prime Minister Viktor Orbán’s unilateral “peace mission” to Moscow and Beijing has also sparked controversy. Despite the ongoing tensions, the EU executive has refrained from commenting on Szíjjártó’s assertions and is focused on resolving the oil transit issue. Until the matter is settled, Hungary has indicated that it will continue to block military aid to Ukraine through the European Peace Facility.
