Key Highlights:
Dispute Background: Hungary and Slovakia sought EU intervention to lift Ukraine's sanctions on Russian oil company Lukoil, which halted the transit of oil through the Druzhba pipeline. Both countries rely heavily on Russian oil for their refineries.
EU Response: The European Commission did not support the request from Hungary and Slovakia. EU Trade Commissioner Valdis Dombrovskis stated that more time is needed to gather evidence and assess the legal situation.
Member States' Stance: At a recent meeting, 11 EU member states backed Dombrovskis’s position, with no states siding with Hungary and Slovakia. The trade agreement with Ukraine includes a security clause that could justify the supply interruption.
Hungary's Position: Hungary has been at odds with its EU partners, with Prime Minister Viktor Orbán unilaterally lobbying for a peace plan for Ukraine during visits to Russia and China without Brussels' approval.
Oil Supply Impact: Ukraine maintains that the pipeline's total oil flow remains unchanged, as other Russian companies continue supplying oil. Russian oil constitutes 35-40% of the raw materials for Slovakia's sole refinery, with products exported to Ukraine and the Czech Republic.
Slovakia's Reaction: Slovakian President Peter Pellegrini warned of a potential response if Ukraine does not change its stance on Lukoil. Slovakia has been assisting Ukraine with gas reserves and electricity supply.
Hungary's Threat: Hungarian Foreign Minister Peter Szijjártó threatened to block a €6.5 billion EU military aid program for Ukraine under the European Peace Fund until the oil supply is resumed.
Conclusion
The EU's decision to support Ukraine's sanctions on Lukoil underscores the complexity of the situation and the challenges faced by Hungary and Slovakia. The ongoing tension highlights the delicate balance between energy dependencies and geopolitical strategies within the EU.
