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EC Rejects Slovakia and Hungary’s Request for Consultations with Ukraine Regarding Sanctions on Lukoil

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  1. The European Commission (EC) rejected Slovakia and Hungary’s request to mediate consultations with Ukraine regarding sanctions imposed on the Russian oil producer Lukoil.
  2. Ukraine has banned the transit of Lukoil oil through its pipelines, causing significant challenges for oil supplies to Central Europe.
  3. Hungarian oil company MOL is negotiating solutions to secure future supplies despite increased costs and risks at the Russia-Ukraine border.

Brussels, August 23, 2023 (FFN) – The European Commission (EC) has rejected a request from Slovakia and Hungary to mediate consultations with Ukraine concerning sanctions imposed on the Russian oil producer Lukoil. This request was made after Ukraine decided to ban the transit of Lukoil oil through its territory, directly affecting oil supplies to Central Europe, including Slovakia and Hungary.

A spokesperson for the European Commission stated that the preliminary assessment by the Commission’s departments concluded that urgent consultations do not appear justified. This decision has sparked concerns, particularly in Hungary, where the state oil company MOL is significantly dependent on oil imports via the Druzhba pipeline, which connects Russia with Eastern Europe and has remained operational despite the ongoing war between Russia and Ukraine.

In response, Hungarian company MOL is seeking solutions to ensure the continuation of oil transit. Gergely Gulyás, Chief of Staff to the Hungarian Prime Minister, noted that MOL would likely be able to sign the necessary agreements to secure future oil transit, even if this entails higher costs and increased risks at the Russia-Ukraine border. This statement follows remarks by Hungarian Foreign Minister Péter Szijjártó, who announced that Hungary’s negotiations to secure long-term oil supplies are nearing their final stage.

Slovakia and Hungary are now focused on finding alternative solutions as the interruption of oil supplies through Ukraine could lead to serious energy issues in the region. The Druzhba pipeline, which has historically ensured the smooth flow of oil from Russia to Central and Eastern Europe, remains a critical element of energy security for these countries.

According to analysts, this development could have long-term implications for the European Union’s energy policy, which aims to diversify energy sources and reduce reliance on Russian supplies. Urgent questions such as energy security and the relationships between the EU, Ukraine, and Russia will continue to dominate discussions at the EU level, particularly in the context of the ongoing conflict in Ukraine and sanctions against Russia.


CountryCompanyLukoil SanctionsAlternative SolutionsOil Transit
SlovakiaYesSeekingAt Risk
HungaryMOLYesNegotiatingSecured

Keywords: European Commission, Lukoil, sanctions, oil transit, alternative solutions

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