Slovakia and Hungary requested European Commission to hold emergency consultation with Kiev over its sanctions on oil major Lukoil
The European Commission (EC) has rejected complaints by Hungary and Slovakia over Ukraine’s suspension of Russian energy supply through pipelines on its territory, advising the two EU member states to look for alternative suppliers.
The Hungarian and Slovak governments had earlier asked the EC to intervene in their dispute with Kiev, after the latter placed sanctions on Russian energy company Lukoil, depriving the two landlocked countries of crude supplies via a pipeline through Ukraine. Last month, Budapest and Bratislava sent a letter to the EU executive, urging it to open emergency consultations with Ukraine over the move, which they insist violates Kiev’s 2014 trade agreement with Brussels.
On Thursday, EC spokesperson Balazs Ujvari stated, as quoted by Politico, that urgent consultations “do not appear to be guaranteed.” He argued that in the commission’s preliminary assessment, the sanctions didn’t pose “an immediate risk to [both countries’] security of supply.”
In a letter to Budapest and Bratislava seen by the Financial Times, EU trade commissioner Valdis Dombrovskis said that they could use an existing pipeline bringing shipborne crude from Croatia, adding that “diversification away from Russian fossil fuels should be actively pursued.”
In June, Ukraine blocked the pipeline transit of Russian crude sold by Lukoil to Central Europe. Kiev imposed sanctions on Lukoil in 2018, having banned the company from divesting its business in the country, as well as prohibiting trade operations and participation in the privatization or leasing of state property. Lukoil still sent crude via the southern arm of the Druzhba pipeline as the EU sanctions did not target these flows.
Hungary, Slovakia and the Czech Republic had sanctions exemptions set up by Brussels to give countries reliant on Russian oil extra time to find alternative supplies.
On Tuesday, Hungarian Foreign Minister Peter Szijjarto claimed that the EC may be behind the suspension of the Russian oil supplies through Ukraine. The move could be directly targeted at Budapest and Bratislava, he suggested.
Slovakia and Hungary are the only EU members that have refused to back the bloc’s policy of supplying Kiev with military aid amid the conflict with Russia. Both have repeatedly called for a diplomatic solution to the crisis.
Kremlin Press Secretary Dmitry Peskov accused Ukraine of making a “political decision” and claimed the situation is “critical” for those still buying Russian oil.
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