BUDAPEST, Hungary (AP) – As the European Union tries to impose sanctions on Russian oil over the war in Ukraine, Hungary is emerging as one of the biggest obstacles to the unanimous support needed by the bloc’s 27 member states.
EU Executive Committee Chair Ursula von der Leyen last week proposed phasing out imports of Russian crude oil within six months and refined products by the end of the year, in order to give up Europe’s dependence on Russian fossil fuels and end a lucrative source of income that helps fund the Russian war.
But Hungary’s nationalist government – one of Moscow’s friendliest in the EU – insists it will not support any sanctions aimed at Russia’s energy exports. Hungary relies heavily on Russian oil and gas and says a boycott of EU oil would be an “atomic bomb” for its economy and destroy its “stable energy supply”.
Von der Leyen made a surprise trip to the Hungarian capital on Monday for talks with Prime Minister Viktor Orbán to try to save the proposal, but no agreement has yet been reached.
Here’s what you need to know about conversations and what’s next:
WHAT DOES HUNGARY SAY?
The Hungarian government has insisted on blocking all EU sanctions proposals involving Russian energy, calling it a “red line” that runs counter to Hungary’s interests. It gets 85% of its natural gas and more than 60% of its oil from Russia.
Orban, widely considered one of Russian President Vladimir Putin’s closest allies in the EU, has been reluctant to support previous EU sanctions against Moscow, including an embargo on Russian coal. But he says such moves do more harm to the bloc than to Russia.
After taking power in 2010, Orbán deepened Hungary’s dependence on Russian energy and said its geography and energy infrastructure made it impossible to stop Russian oil.
“We have said that sanctions on coal will be good because it does not affect Hungary; but now we have really reached the red line, the double line, because the oil and gas embargo will ruin us, “Orban said in a radio interview on Friday.
The landlocked country does not have a seaport that receives global oil supplies and has to rely on pipelines. In addition, the government’s flagship program to reduce utility bills depends on the relatively low cost of Russian fossil fuels and is a key factor in Orban’s domestic political support.
The conversion of Hungarian oil refineries and pipelines to process oil from non-Russian sources will take five years and will require huge investments, Orban said. This will further lead to high energy prices, which will lead to work stoppages and unemployment, he said.
IS THERE A CHANCE FOR COMPROMISE?
In addition to Hungary, Slovakia and the Czech Republic have been demanding for years the phasing out of Russian oil. The European Commission has said it is ready to help countries that are particularly dependent on Russian oil.
“We recognize that Hungary and other landlocked countries, which have significant energy dependence on Russian oil supplies, are in a very specific situation that requires concrete solutions,” commission spokesman Eric Mamer said on Tuesday.
Mamer said Hungary had “legitimate concerns” about oil supplies and that the phasing out of Russian oil could include “differentiated deadlines according to the different situations in specific countries”.
“This is definitely one of the variables, because obviously, if you’re talking about investing in infrastructure upgrades, you need time,” Mamer said.
He did not specify which countries could be offered a deferred application of the oil embargo or for how long.
In a tweet Monday after meeting with Orban von der Leyen, he said the discussion had been “useful in clarifying sanctions and energy security issues” and that progress had been made, but “further work is needed”.
French President Emmanuel Macron spoke with Orban on Tuesday about “guarantees” needed for some member states, such as Hungary, which “are in a very specific situation with regard to pipeline supplies from Russia”, according to Macron’s office.
WHAT SHOULD HUNGARY GAIN?
The blocking of the sanctions package could be used as a lever in a separate conflict between Budapest and the EU.
The bloc has withheld about $ 8 billion in funds to recover from a Hungarian pandemic over what it considers insufficient anti-corruption measures, and has launched a process to withhold further support for breaches of the rule of EU law.
Hungary has been accused of deviating from democratic values by exercising excessive control over the judiciary, stifling media freedom and denying LGBT rights.
Orbán’s government denies the allegations, saying EU sanctions are politically motivated.
But as Hungary’s economy falters amid high inflation and a large budget deficit, it will need that EU money for economic recovery. As EU officials negotiate with Hungary to gain its support for sanctions against Russian energy, the release of seized funds could serve as a bargaining chip.
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Petreken announced from Brussels. AP reporter Sylvie Corbett in Paris contributed.
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