War in Ukraine: Russian oil still flowing into the EU

https://www.dw.com/en/war-in-ukraine-russian-oil-still-flowing-into-the-eu/a-69826039

Arthur Sullivan

4 hours ago4 hours ago

Ukraine is taking direct action to limit the flow of Russian oil and gas to Europe, much to the irritation of two EU member states.

In the two and a half years since Russia's full-scale invasion of Ukraine, questions around Russian oil and gas coming into the EU have never been far from the headlines.

The latest development concerns Ukraine's decision to put Russian oil company Lukoil on a sanctions list, forcing it to stop delivering pipeline crude oil — via Ukrainian territory — to the few EU countries still receiving it.

What's going on with Lukoil and who is affected?

In late June, Ukraine hardened existing sanctions against Lukoil, effectively preventing the company from using Ukraine as a transit country through which to deliver pipeline crude oil to other countries.

Hungary, Slovakia and the Czech Republic still receive Russian crude oil through the southern branch of the Druzhba pipeline — which passes through Ukraine — from Lukoil and other suppliers.

The Center for Research on Energy and Clean Air (CREA) told DW that combined, the three countries imported €2.6 billion ($2.8 billion) worth of crude oil from Russia in the first six months of 2024.

Hungary and Slovakia are the most dependent and their respective governments also have pro-Moscow leanings. They reacted angrily to Kyiv's move and last week asked the European Commission to formally mediate with Ukraine over the issue.

A spokesperson for the European Commission told DW: "The Commission is currently gathering detailed information on whether and how Ukraine's measure might impact the supply of crude oil to Hungary and Slovakia. The Commission has addressed detailed questions to Slovakia and Hungary to establish a complete analysis and reached out to Ukrainian authorities."

"These questions relate to volumes of the current oil transit, legal entities shipping the oil through Ukraine and contracts in place, possibilities for alternative routes of supply as well as the cost of it," the spokesperson added.

Hungary relies on Russia for around 70% of its oil imports, with Lukoil accounting for half that figure.

Hungarian Foreign Minister Peter Szijjarto said Ukraine's measures threaten Hungary's energy security while energy experts have said that if a solution is not found, the country could be dealing with soaring electricity prices and power cuts within weeks.