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Hungary to dam EU funds for member states till Ukraine permits Lukoil transit

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BUDAPEST (Reuters) -Hungary will block European Union refunds for member states that gave munitions to Ukraine till Kyiv permits the transit of oil from Russia’s Lukoil by a pipeline over its territory, the Hungarian overseas minister stated on Tuesday.

Slovakia and Hungary stated earlier this month that that they had stopped receiving oil from Lukoil by the Druzhba pipeline after Ukraine imposed a ban final month on the transit of sources from Lukoil.

Additionally in response to the state of affairs on Tuesday, Hungary’s power ministry convened a working group in regards to the safety of provide, which “reviewed the steps taken thus far and doable subsequent steps,” an announcement by the ministry learn.

“So long as this difficulty shouldn’t be resolved by Ukraine, everybody ought to neglect in regards to the fee of the 6.5 billion euros of the European Peace Facility (EPF) compensation for arms transfers,” International Minister Peter Szijjarto was quoted as saying by broadcaster ATV.

Ukraine’s overseas ministry didn’t instantly reply to a request for remark. Kyiv says it has blocked oil from Lukoil however general flows haven’t been decreased by the pipeline, which additionally serves different suppliers.

The Druzhba, or “friendship”, oil pipeline linking Russia to former socialist bloc states in jap Europe has remained functioning by greater than two years of battle, even because the EU weaned itself off most different sources of Russian power provides. Hungary particularly has remained notably depending on Russian oil and says it can not provide its refineries with out it.

Hungary and Slovakia requested the European Fee on Monday to mediate a session process with Ukraine. The process would enable for the difficulty to go to courtroom except the EU govt physique acts inside three days.

The EPF, created in 2021, operates as a cashback scheme that offers EU members refunds for sending munitions to different nations.

Since Russia’s invasion of Ukraine in 2022, member states that gave weapons to Ukraine can ask for compensation from this fund. However Hungary has been blocking the disbursement of the following tranche of EPF cash for greater than a 12 months, citing numerous points.

(Reporting by Boldizsar Gyori; Modifying by Peter Graff and Paul Simao)

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