Hungary Accuses Ukraine of Blackmail Over Oil Sanctions

Hungary accused Ukraine of blackmail after it halted oil deliveries to Hungary and Slovakia following the countries' suspension of oil from Russian company Lukoil. Hungary's Prime Minister Viktor Orban and Slovakia's Robert Fico criticized the sanctions. The European Commission is urged to mediate, while Fitch Ratings warns of significant credit risks for Slovak and Hungarian refineries.

BUDAPEST, July 26 (Reuters) - An aide to Hungary's Prime Minister accused Ukraine of blackmail on Friday after the country ceased oil deliveries to Hungary and Slovakia. This action came in response to the two nations halting oil imports from Russian company Lukoil, citing Ukraine's sanction list.

On Monday, Hungary and Slovakia appealed to the European Commission to intervene. They claimed that an association agreement should prevent Ukraine from blocking oil transits. "Ukraine is blackmailing the two countries that are standing for peace and ceasefire," declared Gergely Gulyas at a news conference. He warned that a fuel shortage loomed if the situation remained unresolved, emphasizing the need for a solution by September.

Neither Hungary's Prime Minister Viktor Orban nor Slovakia's Robert Fico support the sanctions against Russia. Fitch Ratings highlighted significant credit risks for Slovak and Hungarian refineries following Ukraine's decision to sanction Lukoil. Slovakia has urged the European Commission to expedite its mediation process, while Hungary explores whether Ukraine's actions violate World Trade Organisation regulations.

(With inputs from agencies.)