‘Ukraine is blackmailing Hungary and Slovakia, the countries that have consistently stood for an immediate ceasefire and peace talks, by cutting off oil supplies,’ Minister of Prime Minister’s Office Gergely Gulyás said during his regular press briefing on Friday.
Gulyás called it unfair and contrary to EU agreements that Ukraine is blackmailing the two member states for their pro-peace stance. He stated that this posed an extreme threat to the security of supply. ‘For the time being, there is no reason to panic because the level of reserves is high,’ he said, while indicating that a solution to the situation must be found by September.
The Minister added that what Ukraine is doing is unfair because more than 40 per cent of its electricity, and more than 10 per cent of its fuel and natural gas imports comes from Hungary. Additionally, Hungary is providing shelter to refugees from Ukraine and has mounted the largest humanitarian aid effort in the country’s history.
He stressed that
Hungary does not want to blackmail Ukraine
and is respecting the agreements it has made with Ukraine, while Kyiv is blackmailing Budapest. Hungary has therefore asked the European Commission to play its role as mediator, but if this does not lead to results, ‘other steps should be considered,’ Gulyás added.
EU Affairs Minister János Bóka stated that Ukraine is violating several provisions of the EU Association Agreement by restricting oil supplies. He mentioned that in cases requiring urgent action, the European Commission would initiate a consultation procedure with Ukraine within three days, at the request of member states. ‘If this does not lead to a successful outcome, arbitration proceedings could be launched, allowing for a range of responses,’ the minister said. He added that the Hungarian government is also investigating whether Ukraine’s oil supply restriction measures violate the rules of WTO (World Trade Organisation) and the Energy Charter.
As reported by Hungarian Conservative, Kyiv recently decided to halt oil shipments from Russia’s Lukoil to Hungary and Slovakia via Ukraine. If these shipments do not resume soon, Hungarian and Slovak energy supplies will be at significant risk in the medium and long term.
‘Ukraine’s decision to halt the transit of Russian Lukoil oil to Hungary is both incomprehensible and unacceptable. Although temporary solutions have been implemented to stabilize Hungary’s oil supply, these measures will not suffice in the medium term. Therefore, a permanent solution must be found quickly,’ Hungarian Minister for Foreign Affairs and Trade Péter Szijjártó stated on 19 July, a few days after the Ukrainian decision.
Hungary and Slovakia have appealed to the European Commission over this move. Péter Szijjártó announced on Tuesday that Hungary will block the payment of €6.5 billion from the European Peace Facility (EPF) until Kyiv allows Lukoil to resume uninterrupted oil supplies to Hungary and Slovakia. ‘As long as this issue is not resolved by Ukraine, everyone should forget about the payment of the €6.5 billion European Peace Facility compensation for arms transfers,’ Szijjártó stressed.
Bulgaria has expressed willingness to help Hungary maintain its energy security if the shipments do not resume in the near future. Although there is no direct oil transport link, such as a pipeline, between the two countries, Bulgaria can deliver additional quantities of petroleum products to Hungary by various means if needed. ‘It is another genuine gesture of friendship from Bulgaria to offer this kind of assistance,’ Szijjártó emphasized on Wednesday after discussions with Bulgarian Minister of Energy Vladimir Malinov.
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