Budapest to continue blocking EU funds for Ukraine over oil transit dispute

Hungarian Foreign Minister Peter Szijjarto has stated that Hungary will persist in blocking the allocation of funds from the European Peace Facility to Ukraine until the issue with the suspension of Russian oil transit by Lukoil is resolved.

“We will continue to block the disbursement of funds from the European Peace Facility until Ukraine addresses the issue with Lukoil,” Szijjarto told a foreign media source, according to Caliber.Az.

Szijjarto emphasized that the European Commission should apply pressure on Kyiv to resume Lukoil’s oil shipments to Hungary and Slovakia through Ukrainian territory.

Previously, Ukraine halted the transit of Lukoil’s oil through its territory to Hungary and Slovakia, placing the company on a blacklist. The energy supplies from Russia to these countries are transported via the Druzhba pipeline, which runs through Ukraine.

Slovak Prime Minister Robert Fico had a telephone conversation with Ukrainian Prime Minister Denys Shmyhal, informing him that Bratislava “does not intend to be a hostage to Russian-Ukrainian relations.” Fico highlighted that Kyiv’s decision could lead to a halt in diesel fuel supplies from Slovnaft, which constitutes about 10 per cent of the post-Soviet republic’s total consumption.

Budapest and Bratislava have requested consultations with Kyiv through the mediation of the European Commission (EC) regarding Ukraine’s suspension of oil transit from Russia. The EC is set to review Hungary and Slovakia's complaint about Kyiv’s decision to halt oil pumping on Wednesday. Brussels asserts that the current situation with Lukoil’s oil transit through Ukraine “does not affect EU supply.”