Hungary and Slovakia have formally requested the European Commission to mediate a consultation with Ukraine regarding the sanctions imposed on the Russian oil group Lukoil. This request follows Ukraine’s decision to place Lukoil on a sanctions list, which has halted oil supplies to both countries.
Hungary’s Foreign Minister Peter Szijjarto highlighted that Hungary relies on Lukoil for approximately 2 million metric tons of oil annually, accounting for about one-third of its total oil imports. He expressed concerns over the accuracy of Ukraine’s claims regarding the transfer of oil, stating, “I spoke with the Ukrainian foreign minister yesterday. He said they allow every oil transfer through, but it’s not true.”
The two countries have initiated discussions with the European Commission, which has been given three days to respond. Should this consultation not yield satisfactory results, Hungary and Slovakia have indicated they may escalate the matter to an international court.
The European Commission has acknowledged receipt of the request and is currently reviewing it. Meanwhile, the Ukrainian foreign ministry has not yet commented on the situation. However, Oleksiy Chernyshov, CEO of Naftogaz, noted that while Lukoil’s volumes are absent, the overall volumes of oil transited remain consistent with previous periods.
Lukoil’s supplies through the southern spur of the Druzhba pipeline are crucial, representing about 50% of its total flows. MOL’s refineries in Slovakia and Hungary are heavily dependent on these shipments. In response to the halted supplies, Lukoil has reportedly increased its crude oil lifting plan for the Black Sea port of Novorossiisk by around 140,000 metric tons for July.