Hungary should look to resolve the ongoing dispute with Ukraine over the transit of Russian crude oil diplomatically and without retaliation, according to Olivér Hortay, the head of energy and climate policy at the Századvég think tank.
He told business daily Világgazdaság that Ukraine has restricted Lukoil’s oil exports to Hungary and Slovakia, putting both nations in a difficult situation in the medium term.
However, unlike Slovakia, which has vowed to halt diesel exports to Kyiv, the best solution would be for the political debate over Lukoil to be settled before the question of Hungary imposing export restrictions is even raised.
Horta reminded Kyiv that the biggest help to Ukraine throughout the conflict has been Hungarian electricity exports, as the war has caused it to lose three-quarters of its usable electricity generation capacity.
He explained that the Hungarian gas transmission system operator’s website shows that on average more than 5 million cubic meters of gas per day flows through the pipeline to the two countries to Ukraine – although some of the imports from Austria to Hungary also pass through the Ukrainian system. So essentially, Ukraine is cutting off its own gas supply.
Ukraine buys a significant amount of fuel, mainly gas and oil, from the Bratislava and Százhalombatta refineries, which according to some sources can supply a tenth of Ukrainian needs.
However, in recent months, the biggest help has probably come from electricity exports to Ukraine via Hungary, which at certain times exceeded 40 percent of total Ukrainian imports. As a consequence of the war, Ukraine has lost three-quarters of its usable electricity generation capacity and is in great need of imports.
“Overall, the countries of the region (including Hungary) are providing Ukraine with comprehensive energy assistance, in addition to economic and humanitarian support,” Hortay said.
In light of this, Ukraine’s actions are particularly incomprehensible, and Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó suggested that the European Commission either cannot or does not want to solve the crisis. Hungary and Slovakia have appealed to the European Commission to convince the Ukrainians to open the pipeline. This happened more than a week ago, but no oil from Lukoil has been coming through the key pipeline since then.
Szijjártó pointed out that “Ukraine is in serious breach of the EU accession agreement by causing an energy crisis in an EU member state.”
Moreover, the minister also believes it is possible that Brussels has ordered the pipeline to be cut off in order to take revenge on pro-peace Hungary.
