Hungary has a simple way to resolve tensions with Ukraine over Russian oil, urging Kiev to "nod"

Hungary said on August 22 that tensions over its continued imports of Russian oil could be resolved by simply renaming the barrels, urging Ukraine to support the solution.

Lukoil has temporarily suspended the transport of Russian oil to Hungary and Slovakia via pipelines in Ukraine. (Source: The Moscow Times)

Crude oil transported by Russia's Lukoil through Ukraine could be officially sold to Hungary's energy giant MOL before crossing the border, Hungarian Prime Minister's Chief of Staff Gergely Gulyas said.

The swap would allow to avoid new Kiev sanctions banning Lukoil products from transiting Ukraine.

The sanctions have caused a diplomatic rift between Ukraine and Hungary and Slovakia - two countries that still import Moscow's oil via Kiev.

Both Budapest and Bratislava have been granted temporary exemptions from the European Union's (EU) comprehensive embargo on importing Russian oil via pipeline, but continue to buy fossil fuels from the country.

In July, Hungary called on the EU to force Ukraine to yield to sanctions that Budapest called energy blackmail.

However, the 27-member bloc has rejected the request and said it has several options to ensure oil continues to flow.

Mr. Gulyas asked Kiev to approve the new plan, according to which Lukoil products would be traded with another company at the border before passing through Ukraine.

According to him, as soon as Hungary is able to sign contracts with the Ukrainian side, those contracts will come into effect and Budapest will have to pay an additional $1.50 per barrel of oil in addition to previous agreements for transit.

Although refusing to commit to supporting the plan, Ukrainian Energy Minister German Galushchenko said Kiev would "wait and see if it receives requests for negotiations from Hungary".

Ukraine has imposed restrictions on Lukoil from June 2024 to tighten the flow of money to Russia's military budget.

According to experts, the above proposal is not entirely new and may have been applied informally.

Swapping between energy companies or changing contractual arrangements would be one way to resume deliveries, but ultimately would benefit both Lukoil and the Russian economy.

Source: https://baoquocte.vn/hungary-co-cach-don-gian-giai-quyet-cang-thang-voi-ukraine-ve-van-de-dau-nga-hoi-thuc-kiev-gat-dau-283591.html