Ukraine imposed sanctions against Lukoil, due to which Hungary can no longer buy Russian oil at preferential prices, although this did not disrupt the overall stability of the EU energy market, reported the Politico.
For the past two years, Hungary has benefited from special EU exemptions that have given it access to Russian oil at well below market rates.
In June, Ukraine challenged this arrangement when it banned Russian energy giant Lukoil from sending oil through the country to the EU.
Hungary and Slovakia, which are closely related to the Russian oil importer, declared a lack of energy resources and demanded EU intervention in the situation.
According to energy research service Argus Media, Hungary and Slovakia together received 720 tons of crude oil in August, 000 tons in July, and 792 tons in June.
At the same time, as the publication notes, the Ukrainian sanctions against Lukoil did not cause any complications for the energy security of the EU, and Hungary's difficulties are related to delays in the diversification of oil supply sources.
As noted, although Lukolil's operations were blocked, other Russian oil producers continued to transport oil through the territory of Ukraine. In addition, Lukoil had the option of selling oil to European consumers just at the border with Ukraine.
Croatia could provide additional routes for pipeline transportation of Russian oil. But it increased the cost of oil for Hungary and created problems for the country's authorities, which used Russian oil discounts to increase profits and contain domestic fuel prices.
Russian rebates have allowed Hungary to have the lowest fuel prices at a time when energy prices have skyrocketed across the continent. Hungary also sold surplus oil on foreign markets, which was critical in Viktor Orbán's government's effort to balance the country's budget.
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