Hungary pushes EU for more oil embargo concessions

  • : Crude oil, Natural gas, Oil products
  • 22/05/30

EU leaders are discussing whether to exclude pipeline crude supplies from the bloc's planned embargo on Russian oil imports, a compromise chiefly designed to get Hungary on board. But securing EU-wide consensus is still not guaranteed as Budapest appears to be pushing for further concessions.

"Leaving out the pipeline [from the embargo] is a good approach, but in the case of an accident with the pipeline through Ukraine we have to have the right to get Russian oil from other sources," Hungary's prime minister Viktor Orban said ahead of a European Council meeting on 30-31 May.

Orban has railed against the idea of a ban on Russian oil since the European Commission first proposed it, arguing that it would be impossible for Hungary to phase out Russian crude imports in the short term and that it would require huge refinery and pipeline investment to achieve in the longer term.

"There's no compromise at this moment at all," Orban said today. "We are in a very difficult situation basically because of the irresponsible behaviour of the commission. Out of the blue, we got the idea of an embargo and sanctions on oil without answering questions related to Hungarian energy supply security."

A draft European Council text, which has been prepared but not yet agreed by EU leaders, says the bloc's sixth package of sanctions against Russia will cover crude and refined product imports but will include "a temporary exception for crude oil delivered by pipeline". It also calls for solidarity among member states in case of sudden interruptions in supply.

Earlier today, the EU's high representative for foreign affairs Josep Borrell suggested that restricting sanctions to Russian seaborne oil imports would be enough for the bloc to reach consensus, but European Commission president Ursula von der Leyen said she thinks agreeing a final deal at this week's council meeting may be a stretch.

"We've now solved all the issues but one — crude oil via pipeline," she said. "Discussions are still ongoing. I don't have too high expectations that we'll solve it in the 48 hours, but thereafter."


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