Hungary is bracing for fuel shortages starting in September unless full Russian oil supplies are restored, a government official warned. The country has been affected by a suspension of oil flows from Lukoil, which has been partially halted due to sanctions imposed on the company following the ongoing conflict between Russia and Ukraine.
Hungary and Slovakia, both reliant on oil deliveries from Lukoil via Ukraine, are experiencing pressure on their refineries, all owned by Hungary’s MOL Group. The situation has led to rising tensions, with Hungarian officials accusing Ukraine of “blackmail” regarding oil transit, particularly in light of their positions against sanctions on Russia and military aid to Ukraine.
Gergely Gulyas, chief of staff for Prime Minister Viktor Orban, stated that if the issue is not resolved, Hungary will face severe fuel shortages, emphasizing that a solution is needed by September. He characterized Ukraine’s actions as retaliatory against Hungary and Slovakia’s stance on the Russia-Ukraine conflict.
While oil deliveries from other Russian suppliers remain unaffected, Ukraine’s presidential aide Mykhailo Podolyak dismissed the accusations, asserting that the suspension of oil transit was not an act of blackmail.
Both Hungary and Slovakia are seeking EU mediation in the matter, urging the European Commission to intervene based on an association agreement that they believe prohibits Ukraine from blocking oil transit. Slovakia has called for swift action, expressing concerns about potential fuel queues and rising prices for citizens.
Hungary’s EU Affairs Minister Janos Boka indicated that the country is assessing whether Ukraine’s actions violate World Trade Organization regulations. Gulyas outlined possible solutions, including direct negotiations with Ukraine, assistance from the European Commission, or finding legal avenues to transfer oil through non-sanctioned entities.
Analysts suggest that while significant fuel shortages are unlikely after the summer months, replacing Lukoil supplies poses challenges for MOL. The EU imposed sanctions on Russian oil in 2022, with Hungary, Slovakia, and the Czech Republic receiving exemptions due to their dependency on Russian oil.