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Slovakia offers option to restore Russian oil streams through Ukraine

Slovakia stated on Friday it had provided a technical service to Ukraine to restore stopped Russian oil supplies to Slovak and Hungarian refineries, after warnings that a partial stop might result in fuel scarcities as early as September.

Eastern European Union members Slovakia and Hungary have been struck by a stop in flows from Russian group Lukoil via Ukraine after Kyiv enforced sanctions on the company, pushing Hungarian and Slovak refineries that are owned by Hungary's oil and gas group MOL.

The disagreement has actually demonstrated how some EU countries still depend on Russian energy more than 2 years after a decision in the bloc to stop oil imports following Moscow's intrusion of Ukraine.

Federal governments in Bratislava and Budapest, which oppose sanctions versus Moscow and sending out military aid to Kyiv, have blasted Ukraine for the stop to Lukoil products and are looking for EU mediation in the dispute.

Gergely Gulyas, chief of staff for Hungarian Prime Minister Viktor Orban, stated on Friday Ukraine's choice was blackmail for Hungary's and Slovakia's positions on Russia's war in Ukraine.

Slovakia's federal government office said Prime Minister Robert Fico had actually spoken with his Ukrainian equivalent Denys Shmyhal on Friday.

( Fico) proposed to Ukrainian partners a technical service in which numerous states consisting of Slovakia would have to get involved, the workplace said, without offering more information.

The office said alternative products are more pricey and may not be technically appropriate for Slovakia's Slovnaft refinery.

Extensive negotiations would take place at the highest levels in the coming hours and days, it included.

Oil deliveries from other Russian providers have actually not been interrupted. In the Lukoil conflict, the 2 nations want the European Commission to utilize an association arrangement with Ukraine, based upon which they stated Kyiv could not block oil transit.

Slovakia, which says it is captive to Ukraine and the EU in the dispute, called on the Commission on Thursday not to postpone.

Hungarian authorities likewise advised action on Friday.

If the scenario is not fixed, there will be a fuel scarcity ... a service needs to be found by September, Gulyas told a news conference. Ukraine is blackmailing the two countries that are representing peace and ceasefire.

Ukrainian presidential aide Mykhailo Podolyak declined Budapest's accusations, stating that Ukraine's decision to suspend Russian oil transit to Hungary and Slovakia had absolutely nothing to do with blackmail.

Gulyas stated Budapest was also looking for services.

One is that the Ukrainians confess that they can refrain from doing this to two EU countries, he said. Another is that the European Commission assists us, and the third is that we find a legal loophole that allows the oil to be moved by somebody not impacted by the sanctions.

Tamas Pletser, an oil and gas expert at Erste Group Bank in Budapest, said big fuel shortages were not likely after summertime however said for MOL, Lukoil products were not irreplaceable however still agonizing to lose.

The EU imposed sanctions on Russian oil in 2022 although Slovakia, Hungary and the Czech Republic acquired exemptions due to their dependence on it. Czech refineries, owned by Poland's. Orlen, do not have Lukoil as a supplier, so have not. been directly impacted by the disagreement.

(source: Reuters)