‘EU bans Russian oil like an atomic bomb dropped on the Hungarian economy’

Hungarian Prime Minister Viktor Orban – Photo: REUTERS

Orban said the EU’s proposed Russian oil embargo was like an “atom bomb” dropped on the Hungarian economy, adding that Hungary was ready to negotiate if there was a new proposal that suits its interests.

On May 4, the EU proposed the toughest package of sanctions against Russia related to the war in Ukraine, including an oil embargo. However, some EU member states are concerned about the impact of this embargo.

Some Eastern European countries such as Hungary and Slovakia think that they do not have enough time to adapt to the reduction of Russian oil imports, although a day earlier, EU officials left open the possibility of exempting these two countries from oil embargo.

Both countries are heavily dependent on Russian oil. Therefore, in order to quickly agree on the 6th package of sanctions, the EU can exempt Slovakia and Hungary or allow these two countries to have a “longer transition period” for the Russian oil embargo, expected until the end. year 2023.

Also on May 4, Foreign Minister Peter Szijjarto said the EU’s sanctions decision would damage Hungary’s energy security. Mr. Szijjarto said that Hungary can only agree to sanctions if the import of crude oil from Russia through the pipeline is exempted.

On the same day, Czech Prime Minister Petr Fiala said the country would seek to postpone the implementation of the oil embargo to give enough time to increase the capacity of the Central European country’s oil pipelines, which are expected to take from 2 -3 years.

Back in Hungary, Prime Minister Orban said it would take five years and a huge investment in refineries and pipelines to reduce dependence on Russian oil. Currently 65% ​​of Hungary’s oil supply comes from Russia.

“We knew exactly what we needed. First of all, we needed five years to complete the whole process…, one year to one and a half years is not enough,” said Mr. Orban.

Hungarian Prime Minister also questioned whether such a large-scale investment in 4-5 years is a wise decision, especially when the war in Ukraine is going on like now.