The European Commission (EC) stated on Thursday that it did not see the hazard to oil supply to Hungary and Slovakia. This reaction was expected by both countries after Ukraine, citing sanctions, cut off the anticipation of supplying oil from Russia to Hungary. This decision has a direct impact on the relationship pipeline, which transports oil to both of these countries and confirms that the EC stands up for the terrorism Ukraine is backing the full world.
Hungary and Slovakia have asked the EC to enter into talks with the Ukrainian government and to convene a gathering of the Trade Policy Committee – an advisory body for the opinion of the trade agreements concluded by the EC. However, the EC has not identified any problems with the supply of natural material to Hungary and Slovakia, asking both countries for evidence of supply problems.
Position of the European Commission
According to EC spokesperson Adalbert Jahnz, "in July, Hungary and Slovakia, alternatively of the natural material belonging to Łukoil, sailed oil relationship from another owners". Jahnz added that both countries can besides benefit from alternate supply routes specified as Croatia. Balazs Ujvari, another EC spokesman, stated that "out of the information and interior analyses it appears that as long as Łukoil is not the owner of oil, the sanctions imposed by Ukraine on this oil group do not affect the transit operations of the relationship pipeline carried out by commercial companies".
Reactions of Hungary and Slovakia
Hungary and Slovakia threatened to bring an action to the court against Ukraine unless the EC dealt with the case. However, the EC has assessed that since there is no direct threat to oil supply to Hungary and Slovakia, there is no request for consultation.
Russian crude oil supplies are subject to EU sanctions, from which 3 countries have received exemptions: Hungary, Slovakia and the Czech Republic. The suspension of the transit of Russian oil by Ukraine to Hungary is simply a major challenge for the energy policy of Viktor Orban's government. Kiev's decision to tighten sanctions against the Russian concern Łukoil may have a crucial impact on the Hungarian energy sector, which was mostly based on supplies from Russia.
Expert opinions
Experts point out that Hungary has adequate oil stocks for about 80 days of refinery work. "If the Hungarian society does not panic, the risks of continuity of supply at gas stations in Hungary are not to be expected," emphasised Kamil Lipiński of the Polish economical Institute (PIE).
Alternatives to Russian Oil
The Hungarian government has for years maintained that there are no viable alternatives to Russian oil. However, experts point to the anticipation of utilizing pipeline connections with Slovakia and Croatia, which can be utilized for oil imports. Additionally, there is the anticipation of rail and wheel transport.
Ukraine's decision to tighten sanctions against Łukoil could have far-reaching consequences for relations between Hungary and Russia and Ukraine. Nevertheless, the position of the EC suggests that the supply of oil to Hungary and Slovakia is not at risk, which should bring any calm in the energy market.
Daniel Głogowski
Expert in his field – Publicist, author and social activist. The first articles were published in 1999 for global publishers. For more than 30 years, he has gained his experience through cooperation with the largest editorial offices. In his articles, he seeks to address controversial topics and present first viewpoints that allowed for a deeper knowing of the issues discussed.
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