Hungary has escalated its dispute with Ukraine by blocking 6.5 billion euros in EU aid, citing the suspension of Russian oil transit through the ‘Friendship’ pipeline. Hungarian Foreign Minister Peter Siyarto announced that Hungary will continue to block the allocation of funds from the European Peace Fund until Ukraine resolves the issue with Russian oil company Lukoil. The dispute arose after Ukraine imposed expanded sanctions on Lukoil in June 2024, effectively stopping oil transit to Hungary and Slovakia.Both Hungary and Slovakia claim that Ukraine’s decision violates the EU-Ukraine association agreement, which guarantees the free transit of energy goods. They argue that this action threatens their energy security and could lead to increased fuel prices. Hungarian government spokesman Zoltan Kovacs stated that Ukraine’s decision ‘puts the oil supply of two EU Member States at fundamental risk’.The European Commission has received formal complaints from Hungary and Slovakia and is reviewing the situation. There are discussions about potentially convening a meeting of the EU’s Trade Policy Committee to address the issue. Meanwhile, Russia claims it continues to supply oil to Hungary and Slovakia through alternative means, with Russian Deputy Prime Minister Alexander Novak stating, ‘Operations are now being carried out, and we are working to ensure their continuation’.This dispute has broader implications for EU-Ukraine relations and aid. Hungary has threatened to sue Ukraine and has called for the abolition of Ukraine’s customs-free status if the decision is not reversed. The situation also highlights the complex geopolitical dynamics surrounding energy supply in the region, with Russia attempting to leverage the dispute to its advantage.
Key points
- Hungary is blocking 6.
- Ukraine’s sanctions on Lukoil have stopped oil transit to Hungary and Slovakia, leading to claims of energy security threats.
- The European Commission is reviewing the situation and may convene a meeting of the Trade Policy Committee.
- Russia claims to continue supplying oil to Hungary and Slovakia through alternative means.
5 billion euros in EU aid to Ukraine due to a dispute over Russian oil transit.
Contradictions👾While Hungary and Slovakia claim their energy security is at risk, the EU Commission states that the ban has had no immediate impact on the security of oil supply to the EU.
👾Russia claims to continue oil supplies to Hungary and Slovakia, but the exact route and details are not specified.
