Page 12 - FSUOGM Week 18 2022

FSUOGM POLICY FSUOGM

Hungary receives most of its crude from Russia via the Druzhba pipeline system (Image: Wikimedia)

He added that a proposal in writing had not yet had seen so far would cause the Hungarian
been delivered. economy to grind to a halt, he added
The European Commission is looking to The Hungarian government will withhold
finalise the sanctions proposals ahead of a its approval of any sanctions against Russia that
meeting of EU ambassadors in Brussels on May would render the transit of oil and natural gas to
4. Germany has already signalled that it would the country unfeasible, as this would compro-
be ready to cope with a phased embargo on Rus- mise the country’s energy security, given the reli-
sian crude, leaving Hungary and Slovakia in the ance of its infrastructure on Russian deliveries,
uncomfortable position to break the unity of the Foreign Minister Peter Szijjarto said on Tuesday
EU-wide sanction. after talks in Kazakhstan.
Steiner also said that Russia’s recent decision At present, about 65% of the country’s oil
to halt gas deliveries to Poland and Bulgaria consumption, 20,000 tonnes a day, and 85% of
has not affected Hungary’s gas supply, as transit the gas comes from Russia. There are no alter-
deliveries via Bulgaria continue, as stipulated in native transport routes to replace this quantity.
the terms of contracts. Hungary signed a 15-year Hungary’s MOL said it would need years
gas contract with Gazprom in October, securing and millions of dollars to convert its refineries
the supply of 4.5bcm gas through Serbia, bypass- near Budapest and in Bratislava to switch from
ing Ukraine. medium sour Urals Blend crude oil, predomi-
There is no quick replacement for Russian nantly delivered via the Druzhba pipeline, to
energy imports, as establishing new delivery other types. Over the years, the company sought
routes would take years, Zoltan Kovacs, the to reduce its dependence on Russian oil, but the
government’s international spokesman, told the investment of $170mn since 2013 has so far only
BBC. All proposals on sanctions extending to succeeded in increasing the blending capacity of
Russian energy that the Hungarian government non-Russian oil in refineries to 30%. ™

Bratislava refuses to comment on reports

that it will pay for Russian gas in rubles

THE Slovak government has refused to give a would not violate EU sanctions, he claimed.
straight answer to speculation that the state- The Kremlin insisted in late March that
owned energy company SPP has agreed to open “unfriendly” Western countries pay for Russian
a ruble account with Russia’s Gazprombank and gas imports in rubles, rather than the euro or
thus would in effect be paying for Russian gas in dollar as previously.
rubles, which may be a breach of EU sanctions. Gas companies in Hungary, Austria and Ger-
Slovak Economy Minister Richard Sulik said many have reportedly opened ruble accounts at
the answer to this question would be made pub- Gazprombank to pay for supplies from the state-
lic “in due course”. If Slovakia did so, he said, it owned Russian company Gazprom.

P12 www. NEWSBASE .com Week 18 05•May•2021