Ukraine's oil cutoff threat puts Hungary's energy at risk

According to Gulyás, Hungary may face fuel shortages if the situation does not improve. However, he noted that the country's current level of fuel reserves is high. Despite this, an agreement on oil supplies must be reached by September at the latest.

Last week, Ukrainian authorities halted oil supplies from the Russian company Lukoil. The Hungarian government believes that Ukraine's actions are contrary to its agreements with the European Union. Additionally, Budapest claims these actions could affect Ukraine's accession process to the Community.

Therefore, Hungary has asked the European Commission for mediation. As European Affairs Minister János Boka, who was present at Friday's press conference, said, "We expect the EC to start consultations initiated by the Hungarian government. Our next steps will depend on that."

Péter Szijjártó, Hungary's Minister of Foreign Affairs, informed that "33 percent of Hungary's oil imports and about 40-45 percent of Slovakia's oil imports come from supplies by the Russian company Lukoil through Ukraine."

The government of Viktor Orbán has announced that it will block the disbursement of €6.5 billion ($6.8 billion) in compensation for arms transfers from the European Peace Facility (EPF) until Ukraine resolves the issue of the transit of oil supplied by Lukoil. Szijjártó conveyed this information on Tuesday in an interview with ATV television.

Hungary is a country heavily dependent on Russian energy resources. Annually, it imports 4.5 billion cubic metres of natural gas under a 15-year contract with Gazprom, which was signed in September 2021. Last year, the country imported 5 million tonnes of oil. Additionally, the Russian state-owned company Rosatom is responsible for expanding Hungary's only energy plant, the nuclear power plant in Paks, located in the central part of Hungary.