Hungarian Minister of Foreign Affairs and Trade, Peter Szijjarto, has criticized the sanctions imposed by the United States on Serbia’s oil company NIS, attributing them to a retaliatory approach from the Biden administration toward the sovereign policies of both Hungary and Serbia. He emphasized that Hungary, along with the energy company MOL, is prepared to support Serbia in compensating for any potential losses in its oil supply.
Szijjarto argued that the situation stems from the Biden administration’s antagonistic stance toward Central European countries. He noted that both Hungary and Serbia have chosen conservative, nationalist governments that prioritize national interests, and in response, the US imposed sanctions on them. These actions, he claimed, have posed significant challenges for both nations, undermining their sovereignty. The minister pointed out that the US had previously sanctioned Gazprom Bank, fully aware of the difficulties this would create for regional gas supplies. Similarly, by sanctioning NIS, the US deliberately disrupted Serbia’s ability to secure its oil supply, leading to severe consequences.
Beyond Serbia, these issues are impacting the broader Central European region. The exclusion of Serbia’s refinery capacity from the regional market, Szijjarto explained, causes supply chain disruptions. If Serbia cannot refine crude oil, it will need to import gasoline from other sources, which strains the regional market in terms of quality and logistics. This could result in rising fuel prices and additional costs that ultimately affect the people of Central Europe, including Hungary. The minister stressed that regional cooperation is vital to address these challenges and prevent negative consequences for local fuel markets. He also highlighted the importance of finding creative solutions to navigate issues related to gas payments, noting that Hungary has successfully secured its gas supply through coordinated efforts with Russia, Turkey, Bulgaria, and Serbia.
On the US sanctions against NIS, Szijjarto pointed out that Serbia’s increased need to import oil would require Hungary to ramp up its exports, with MOL ready to take on this responsibility. However, he acknowledged that securing the necessary volumes would require cooperation from other regional partners. To that end, both short-term and long-term agreements have already been established, and a feasibility study on oil deliveries from Hungary to Serbia has been completed. The study outlines plans for a 180-kilometer oil pipeline to be constructed over the next three years, with an estimated cost of 320 million euros. Serbia is expected to build two-thirds of the pipeline, which Szijjarto described as a strategic investment, comparable to other regional projects like the development of a regional electricity market and the reconstruction of the railway connection between the two countries’ capitals.
With a solid foundation and additional resources in place, Hungary and Serbia are well-positioned to move forward with these plans. The minister also mentioned ongoing discussions with the new US administration under President Donald Trump, where he received assurances that all hostile decisions from the previous administration would be reviewed. Szijjarto expressed hope that this review would extend to the sanctions on NIS.
