Hungary and Slovakia challenge Ukraine on Russian oil transit

The dispute over Russian oil transit between Hungary, Slovakia and Ukraine reveals deep-rooted energy tensions within the European Union, exacerbated by divergent interests and complex political alliances.

Share:

pipeline Druzhba entre l'Ukraine et la Hongrie

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Hungary and Slovakia find themselves in the midst of an energy conflict with Ukraine, which recently halted the transit of Russian Lukoil oil through its territory.
This interruption directly threatens the energy supply of both countries, which are heavily dependent on Russian oil for their refineries.
This dispute highlights the persistent energy vulnerabilities of certain members of the European Union, and the complexity of geopolitical relations in the region.

Hungary’s accusations

Hungarian Foreign Minister Peter Szijjarto strongly criticized the European Commission, accusing it of failing to act effectively to resolve the problem.
In his view, stopping transit through Ukraine is a clear violation of the EU-Ukraine Association Agreement.
Szijjarto goes further, insinuating that Brussels may be behind this crisis, with the aim of putting pressure on EU countries opposed to arms transfers to Ukraine.
Hungary, which relies heavily on Russian oil to fuel its economy, feels hostage to this situation.
Szijjarto denounced an “attempt at blackmail” orchestrated by the European Commission, and urged the latter to take immediate steps to restore oil flows.

Slovakia’s reaction

Slovakia’s Prime Minister, Robert Fico, has also reacted strongly, threatening to halt diesel deliveries to Ukraine if oil flows are not quickly restored.
Slovakia, like Hungary, is facing an oil shortage due to Ukrainian sanctions against Lukoil.
Fico has proposed a technical solution to the problem, although the details of this proposal have not been disclosed.
Slovakia’s dependence on Russian oil is such that any interruption in supply could have serious consequences for its economy.
Fico’s criticism of Kyiv’s sanctions reflects a growing frustration with a situation he considers detrimental to his country.

Ukraine’s response

Ukraine, through its Deputy Energy Minister Roman Andarak, has assured us that it is ready to resolve transit problems for unsanctioned companies.
He pointed out that oil transit for other Russian suppliers has not been interrupted, and that Ukraine remains a reliable energy transit partner for the EU.
Andarak stressed that Kyiv “guarantees uninterrupted transit” for all companies not subject to Western and Ukrainian sanctions.
This position is intended to show that Ukraine is still committed to meeting its energy transit obligations, despite the current tensions.

Role of the European Commission

The European Commission said it had begun gathering information to assess the situation and had contacted the Ukrainian authorities.
However, the lack of a rapid response prompted harsh criticism from Hungary and Slovakia, exacerbating internal tensions within the EU.
The Commission has indicated that it is putting detailed questions to Slovakia and Hungary to establish a full analysis of the situation.
The questions cover current oil transit volumes, legal entities shipping oil via Ukraine, existing contracts, and the possibilities and costs of alternative supply routes.

Suspension of European funds

In response to this crisis, Hungary suspended EU reimbursements for military aid to Ukraine, demanding the resumption of oil transit.
This suspension concerns funds from the European Peace Fund (EPF), underlining the use of financial levers to exert political pressure.
Peter Szijjarto has stated that until Ukraine resolves this situation, the 6.5 billion euros in reimbursements for arms transfers will remain on hold.
The Ukrainian Ministry of Foreign Affairs has not yet officially responded to this suspension, but has made it clear that the blocking of funds does not affect the overall flow of oil via the Druzhba pipeline.
This pipeline, nicknamed “Friendship”, continues to operate despite more than two years of conflict, although the EU has significantly reduced its dependence on Russian energy sources.

Persistent energy dependence

This conflict highlights the continuing dependence of some European countries on Russian oil, despite EU efforts to reduce this dependence since Russia’s invasion of Ukraine.
Hungary, Slovakia and the Czech Republic benefit from temporary exemptions from the EU oil embargo, but these exemptions reveal their vulnerability to transit interruptions.
The situation also demonstrates the challenges the EU faces in maintaining solidarity between its members while managing external energy pressures.
The EU’s ability to find a lasting solution to this conflict will be crucial to its long-term energy stability.

Viktor Orban visits Moscow

Hungarian Prime Minister Viktor Orban’s recent visit to Moscow to meet Vladimir Putin has heightened tensions within the EU.
The visit, made without prior consultation with other EU members, angered many European partners.
In response, the European Commission announced a reduction in representation at meetings in Hungary, limiting participation to senior officials until the end of the year.
The decision to boycott a meeting of foreign ministers scheduled to take place in Budapest in August demonstrates the escalation of intra-European tensions.
This complex situation highlights the current energy and diplomatic challenges in Central Europe.
Resolving this energy conflict is crucial to maintaining unity and energy security within the EU.
Ongoing negotiations, possible actions by the European Commission, and the responses of the parties involved will determine the outcome of this crisis, with significant implications for relations between member states and the region’s energy supply.

Global South Utilities is investing $1 billion in new solar, wind and storage projects to strengthen Yemen's energy capacity and expand its regional influence.
British International Investment and FirstRand partner to finance the decarbonisation of African companies through a facility focused on supporting high-emission sectors.
Budapest moves to secure Serbian oil supply, threatened by Croatia’s suspension of crude flows following US sanctions on the Russian-controlled NIS refinery.
Moscow says it wants to increase oil and liquefied natural gas exports to Beijing, while consolidating bilateral cooperation amid US sanctions targeting Russian producers.
The European Investment Bank is mobilising €2bn in financing backed by the European Commission for energy projects in Africa, with a strategic objective rooted in the European Union’s energy diplomacy.
Russia faces a structural decline in energy revenues as strengthened sanctions against Rosneft and Lukoil disrupt trade flows and deepen the federal budget deficit.
Washington imposes new sanctions targeting vessels, shipowners and intermediaries in Asia, increasing the regulatory risk of Iranian oil trade and redefining maritime compliance in the region.
OFAC’s licence for Paks II circumvents sanctions on Rosatom in exchange for US technological involvement, reshaping the balance of interests between Moscow, Budapest and Washington.
Finland, Estonia, Hungary and Czechia are multiplying bilateral initiatives in Africa to capture strategic energy and mining projects under the European Global Gateway programme.
The Brazilian president calls for a voluntary and non-binding energy transition during COP30 in Belém, avoiding direct confrontation with oil-producing countries.
The region attracted only a small share of global capital allocated to renewables in 2024, despite high energy needs and ambitious development goals, according to a report published in November.
The United States approves South Korea’s development of civilian uranium enrichment capabilities and supports a nuclear-powered submarine project, expanding a strategic partnership already linked to a major trade agreement.
The EU member states agree to prioritise a loan mechanism backed by immobilised Russian assets to finance aid to Ukraine, reducing national budgetary impact while ensuring enhanced funding capacity.
The Canadian government commits $56 billion to a new wave of infrastructure projects aimed at expanding energy corridors, accelerating critical mineral extraction and reinforcing strategic capacity.
Berlin strengthens its cooperation with Abuja through funding aimed at supporting Nigeria’s energy diversification and consolidating its renewable infrastructure.
COP30 begins in Belém under uncertainty, as countries fail to agree on key discussion topics, highlighting deep divisions over climate finance and the global energy transition.
The United States secures a tungsten joint venture in Kazakhstan and mining protocols in Uzbekistan, with financing envisaged from the Export-Import Bank of the United States and shipment routed via the Trans-Caspian corridor.
The United States grants Hungary a one-year waiver on sanctions targeting Russian oil, in return for a commitment to purchase US liquefied natural gas worth $600mn.
Meeting in Canada, G7 energy ministers unveiled a series of projects aimed at securing supply chains for critical minerals, in response to China’s restrictions on rare earth exports.
Donald Trump announces an immediate reduction in tariffs on Chinese fentanyl-related imports from 20% to 10%, potentially impacting energy flows between Washington and Beijing.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.