Hungary Blocks EU Refunds Over Ukraine's Oil Transit Ban

Hungary is blocking EU refunds for arms sent to Ukraine until Kyiv lifts its ban on oil transit from Russia's Lukoil. Slovakia and Hungary stopped receiving Lukoil supplies via the Druzhba pipeline last month due to Ukraine's ban. Hungary relies heavily on Russian oil and seeks EU mediation to resolve the issue.

In a significant development, Hungary has announced it will block European Union refunds for member states supplying munitions to Ukraine unless Kyiv allows the transit of Russian oil from Lukoil, the Hungarian foreign minister declared on Tuesday.

Slovakia and Hungary both revealed earlier this month that they ceased receiving oil from Lukoil via the Druzhba pipeline following Ukraine's ban last month on resource transit. Hungarian Foreign Minister Peter Szijjarto stressed the need for Ukraine to resolve the issue, cautioning that without it, the 6.5 billion euros in European Peace Facility compensation for arms transfers would be frozen.

The Druzhba pipeline, a vital link connecting Russia to former Socialist bloc states in eastern Europe, has remained operational amid the ongoing war, despite the EU's gradual reduction of Russian energy dependence. Hungary, heavily reliant on Russian oil, sought EU mediation on Monday, threatening legal action if the issue is not resolved swiftly.

(With inputs from agencies.)