Hungary has indicated a potential suspension of electricity and natural gas deliveries to Ukraine, contingent upon the restoration of crude oil flows through the Druzhba pipeline. This statement comes from Gergely Gulyas, Chief of Staff to Prime Minister Viktor Orban, as tensions rise over the halted transit of Russian oil.
The current dispute stems from a disruption that began on January 27, when Ukraine reported drone damage to the pipeline infrastructure. The Druzhba pipeline is critical as it supplies the last two EU refineries still processing Russian crude, located in Hungary and Slovakia. Since the interruption, both nations have been exploring alternative feedstock sources for their refineries.
In reaction to the situation, Hungary has started releasing its strategic oil reserves at the request of MOL, its national oil and gas company. Meanwhile, Slovakia has sanctioned a 250,000-ton loan from its emergency reserves. Both countries have accused Ukraine of politically motivated delays in resuming pipeline operations. Additionally, they recently announced a halt on diesel exports to Ukraine.
Gulyas emphasized that Hungary is closely coordinating with Slovakia and evaluating further countermeasures, including the potential cutoff of energy supplies to Ukraine if oil transit does not recommence. Slovak Prime Minister Robert Fico has echoed this sentiment by suggesting a possible cessation of emergency electricity support. Notably, market data indicates that Hungary and Slovakia collectively accounted for approximately 68% of Ukraine’s electricity imports this month, with Hungary supplying around one-third of its current gas imports. Ukrainian officials have denied any political motivations behind the delay in restarting Druzhba flows.
On a broader European scale, both Hungary and Slovakia have sought permission from the European Commission to import Russian crude via maritime routes despite existing EU sanctions. One proposed route involves utilizing the JANAF pipeline through Croatia, although Croatian authorities have clarified that any shipments should not include Russian oil.
