Valdis Dombrovskis: Ukrainian restrictions on Lukoil don’t affect oil transit operations to Hungary

Copyright: European Union
Valdis Dombrovskis, Commission's Executive Vice-President for an Economy that works for people, urged diversification away from Russian fossil fuels.

In a call today, Valdis Dombrovskis, Commission’s Executive Vice-President for an Economy that works for people, with Hungarian Foreign Minister Péter Szijjártó explained that after his contact with Ukrainians, ongoing oil transit operations to Hungary and Slovakia are not affected by the restriction on Lukoil imposed by Ukraine. He also noted that EU countries should reduce their dependence on Russian energy supplies.

“I spoke with Minister Péter Szijjártó to get more details on energy supplies to Hungary, following up my letter to him yesterday. Ukraine has confirmed that ongoing oil transit operations to 🇭🇺 🇸🇰 are not affected as long as Lukoil is not the owner of the oil. At the same time, it is important to reduce dependency on energy from Russia,” Dombrovskis posted on his X account today.

During the EU foreign ministers meeting in Brussels, Szijjártó expressed concerns about Ukraine’s ban on Russian oil company Lukoil. This ban could seriously affect Hungary’s energy security, as Lukoil supplies about 50% of its oil to Hungary and Slovakia through the Druzhba pipeline’s southern spur.

Ukraine’s restrictions on Lukoil were imposed to reduce Moscow’s oil earnings, which amounted to $180 billion in the past year, according to the Kyiv School of Economics. The immediate result of the ban was a drop in Hungary’s oil imports, raising the threat of electricity shortages and high energy prices. Szijjártó criticised Ukraine’s actions as “unacceptable,” especially considering its aspirations to join the European Union, as they put the oil supply of two EU member states at “fundamental risk.”

Hungary once again blocked the allocation of over €6 billion in crucial EU military aid for Ukraine during the meeting and requested EU intervention. Despite the EU’s sanctions on purchasing Russian crude oil following the invasion of Ukraine, Hungary, Slovakia, and the Czech Republic were initially exempt from the ban to allow them to diversify their energy sources.

In a letter sent to Budapest and Bratislava yesterday, Dombrovskis urged diversification away from Russian fossil fuels. He indicated that the Janaf Adriatic pipeline could provide alternative capacity for Hungary and Slovakia. An EU spokesperson said that Ukraine’s restrictions on Lukoil imports were not to cause an immediate problem.

In addition, Croatian PM Andrej Plenković announced that Janaf is ready to transport oil to Hungary and Slovakia. However, Hungary’s foreign minister criticised the European Commission’s response, calling it a scandal and rejecting the proposed alternative route through Croatia.

Szijjártó also said that “Croatia is not a reliable transit country”.

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