Hungary Accuses Ukraine of Blackmail Over Oil Supply Disruptions

Hungary has accused Ukraine of blackmailing both itself and Slovakia by halting oil supplies, according to a statement from Hungarian Prime Minister Viktor Orban's advisor, Gergely Gulyas. The accusations come in the wake of Ukraine's decision to impose sanctions on Russia's Lukoil, which has disrupted the oil transit through the country.

Budapest and Bratislava intensified their pressure after they stopped receiving oil from Lukoil, which had been transported via Ukraine. This action followed Ukraine's placement of Lukoil on its sanctions list. Both Hungary and Slovakia have urged the European Commission to address the situation, citing the association agreement with Ukraine which they believe should prevent such disruptions.

Gulyas described Ukraine's actions as blackmail, emphasizing that if the issue remains unresolved, a fuel shortage could occur. He stressed the need for a resolution by September. The Ukrainian Ministry of Energy has yet to comment on the allegations.

Prime Ministers Viktor Orban of Hungary and Robert Fico of Slovakia have criticized the sanctions imposed on Russia and the Western military support provided to Ukraine. Despite the EU sanctions on Russian oil implemented in 2022, Slovakia, the Czech Republic, and Hungary were granted exemptions due to their significant reliance on Russian energy.

The decision by Ukraine to sanction Lukoil has raised concerns about increased credit risk for refineries in Slovakia and Hungary, as reported by Fitch Ratings. In response, Slovakia has called on the European Commission to expedite consultations with Ukraine. Gulyas also indicated that Hungary is looking for solutions, including urging Ukraine to reconsider its stance or finding legal means to bypass the sanctions.