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Media reports Russia, Hungary operating to continue oil supplies
(MENAFN) In a recent development, Moscow and Budapest are actively seeking to restore the supply of Russian oil to Hungary after Ukraine blocked the transit route, according to reports from the TASS news agency. This information comes from Hungarian Foreign Minister Peter Szijjarto, who has been involved in the efforts to resolve the issue.
The blockage of oil transit through Ukraine has been a significant challenge since June, when Kiev imposed stricter sanctions on Russian oil giant Lukoil. These sanctions prohibit Lukoil from using Ukraine as a transit country for its energy supplies. This development has directly impacted a five-year agreement that Lukoil secured with Hungarian energy company Mol in 2019, which involved exporting approximately four million tons of oil annually.
Efforts to find a viable solution to this transit dilemma are underway, Szijjarto told journalists during a UN conference in New York. This statement followed a meeting with Russian Foreign Minister Sergey Lavrov. “We discussed the issue of safe supplies of gas and oil to Hungary from Russia,” Szijjarto stated. “If we talk about oil supplies, a new legal situation has now arisen in Ukraine, forcing Lukoil to halt the supplies to Hungary.”
Ukraine's sanctions on Lukoil date back to 2018, initially banning the company from divesting its business in Ukraine, engaging in trade operations, and participating in the privatization or leasing of state property. Historically, Lukoil supplied Hungary with Russian crude oil through the southern branch of the Druzhba oil pipeline, which traverses Ukrainian territory. However, Kiev's recent actions have disrupted this arrangement, preventing Lukoil from continuing its oil deliveries to Hungary.
This situation underscores the complex geopolitical and economic challenges faced by Russia, Ukraine, and Hungary in ensuring stable energy supplies amidst ongoing tensions and regulatory changes. The collaboration between Moscow and Budapest aims to navigate these challenges and restore the crucial oil supply route to Hungary.
The blockage of oil transit through Ukraine has been a significant challenge since June, when Kiev imposed stricter sanctions on Russian oil giant Lukoil. These sanctions prohibit Lukoil from using Ukraine as a transit country for its energy supplies. This development has directly impacted a five-year agreement that Lukoil secured with Hungarian energy company Mol in 2019, which involved exporting approximately four million tons of oil annually.
Efforts to find a viable solution to this transit dilemma are underway, Szijjarto told journalists during a UN conference in New York. This statement followed a meeting with Russian Foreign Minister Sergey Lavrov. “We discussed the issue of safe supplies of gas and oil to Hungary from Russia,” Szijjarto stated. “If we talk about oil supplies, a new legal situation has now arisen in Ukraine, forcing Lukoil to halt the supplies to Hungary.”
Ukraine's sanctions on Lukoil date back to 2018, initially banning the company from divesting its business in Ukraine, engaging in trade operations, and participating in the privatization or leasing of state property. Historically, Lukoil supplied Hungary with Russian crude oil through the southern branch of the Druzhba oil pipeline, which traverses Ukrainian territory. However, Kiev's recent actions have disrupted this arrangement, preventing Lukoil from continuing its oil deliveries to Hungary.
This situation underscores the complex geopolitical and economic challenges faced by Russia, Ukraine, and Hungary in ensuring stable energy supplies amidst ongoing tensions and regulatory changes. The collaboration between Moscow and Budapest aims to navigate these challenges and restore the crucial oil supply route to Hungary.
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