Hungary Faces Fuel Shortages Amid Lukoil Sanctions

Hungary may face fuel shortages by September if Russian oil flows via Ukraine are not restored. Hungary accuses Ukraine of blackmail. Slovakia and Hungary seek EU mediation as sanctions on Lukoil disrupt supplies. Ukraine denies blackmail claims, and MOL explores alternative solutions.

Hungary is set to encounter fuel shortages from September if Russian oil flows through Ukraine are not fully restored, a government official warned on Friday. The official accused Ukraine of blackmail, stating that supplies were partially suspended by Ukraine.

Eastern EU members Slovakia and Hungary have been impacted by the halt of flows from Russian company Lukoil due to sanctions. This has placed pressure on Hungarian and Slovak refineries, primarily owned by Hungary's oil and gas group MOL. The governments in both Bratislava and Budapest, who oppose sanctions on Moscow in the Russia-Ukraine conflict, are seeking EU mediation.

Gergely Gulyas, Hungarian Prime Minister Viktor Orban's chief of staff, labeled Ukraine's actions as blackmail. He emphasized the need for a resolution by September to avoid fuel shortages. Ukrainian presidential aide Mykhailo Podolyak refuted the blackmail accusations, explaining that the suspension was unrelated.

(With inputs from agencies.)