Hungary and Slovakia are threatening legal action against Ukraine over the country’s decision to restrict the oil supplies of the Lukoil company. The European Commission is ready to mediate in the escalating dispute, with Kyiv claiming the sanctions are necessary to weaken Kremlin revenues fueling the ongoing military invasion. However, Budapest and Bratislava argue that the disruption in energy supplies poses a threat to their economies.
In a joint letter, Hungary and Slovakia have called on the Commission to intervene and launch a consultation procedure under the EU-Ukraine Association Agreement. The Commission is currently studying the contents of the letter and gathering more information before making a decision. A meeting of the trade policy committee is set to take place to assess the facts and find a solution with Ukraine.
If EU-led mediation does not provide a satisfactory response, Hungary and Slovakia have warned that they will take Ukraine to court. The dispute comes amid tensions over an EU-wide ban on the purchase of Russian crude oil, from which Hungary, Slovakia, and Czechia are exempted. The derogation allows the three countries to receive oil supplies through the Druzhba pipeline.
The dispute also follows Hungarian Prime Minister Viktor Orbán’s controversial visits to Kyiv, Moscow, and Beijing to discuss ending the Ukraine war. The conflict has further inflamed criticisms of Hungary’s EU Council presidency and its veto on military assistance to Ukraine. Hungary has linked the oil dispute to the stalled €6.5 billion in arms transfer reimbursements, threatening further actions if the issue is not resolved.
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