Ukraine has halted a third of Russian oil imports to Hungary, leading Hungary and Slovakia to request immediate consultations with Ukraine, mediated by the European Commission. This action came after Ukraine stopped transferring Lukoil oil to the west last week.

Hungarian Foreign Minister Peter Szijjártó stated that despite assurances from Ukraine, the oil transfer was not fully restored. The European Commission has three days to comply with the request before the matter goes to an international court. The sanctions, imposed by Kyiv in June, did not affect oil transfer through the Druzhba pipeline by other Russian companies such as Rosneft and Tatneft. Slovakia's Transpetrol also suspended Lukoil supplies, affecting Slovakia's main refinery controlled by Hungary's MOL.

Szijjártó noted that while Ukraine showed a willingness to resolve the issue, long-term energy security in Hungary remains threatened. Talks with Moscow about alternative oil supply channels have begun. Russian oil comprises 70% of Hungarian imports, with Lukoil contributing about half. Hungary annually receives around 2 million tons of oil from Lukoil, about a third of its total oil imports.

EU sanctions exempted Hungary, Slovakia, and the Czech Republic due to their landlocked status, requiring them to seek alternative sources like the Adria pipeline in Croatia, which has limited capacity. Ukrainian MP Inna Sovsun criticized the EU and G-7 for their delayed action on Russian oil pipelines, prompting Ukraine to act independently to prevent Russian profits from funding the conflict.

A report by the Center for Energy and Clean Air Research in April 2024 indicated:

• Russia's fossil fuel export revenue was 732 million euros daily
• Oil pipeline exports valued at 102 million euros daily
• Hungary was the largest EU importer of Russian fossil fuels in April, totaling 417 million euros, with pipeline crude oil at 246 million euros
• Slovakia imported 323 million euros of Russian fuels, including 200 million euros of oil
• The Czech Republic imported Russian oil worth 133 million euros

Szijjártó did not specify emergency measures or long-term solutions, though opening Hungary's strategic reserve, sufficient for 90 days, is an option. This could increase fuel prices and cause blackouts.

Despite sanctions, Ukraine continues partial operation of the Druzhba pipeline, transporting Kazakh oil to a German refinery. Lukoil has faced sanctions since 2018, impacting its commercial activities and involvement in Ukraine's privatization or leasing.

The US Embassy in Budapest recently warned Hungary about the risks of continued energy dependence on Russia. While neighboring countries reduced their dependence, Hungary has not. Slovakia’s Prime Minister Robert Fico criticized sanctions for making Slovakia a hostage to Russian-Ukrainian relations, echoed by Foreign Minister Juraj Blanar, who argued that sanctions impact Slovakia and the EU more than Russia.