Whether or not the EU will ease the ban on Russian oil imports to reassure Hungary's prime minister, Viktor Orban, who is trying tooth and nail to block the latest European sanctions against Vladimir Putin's war machine?
This seems to be the key question for the EU as the war in Ukraine continues.
A compromise could be reached by banning Russian oil arriving by tanker but allowing imports by pipeline, a proposal that would allow Hungary, Slovakia and the Czech Republic to continue to be supplied via the Soviet-era Druzhba pipeline that runs through Ukraine.
Why the plan for a complete blockade of Russian oil imports is stuck[BR]As the Guardian reports, it has been more than three weeks since the president of the European Commission, Ursula von der Leyen, proposed a complete ban on Russian oil imports by the end of the year, yet the EU is stuck with the plans.
Hungary, which is heavily dependent on Russian oil, has said it needs five years and billions of euros to upgrade its refineries.
The dispute threatens to overshadow the EU leaders' summit in Brussels on Monday and Tuesday, which is officially dedicated to discussing economic, political and humanitarian support for Ukraine and the crisis in global food supplies.
Zelensky's arrows to EU
[BR][BR]Ukrainian President Volodymyr Zelensky, who is due to address EU leaders via video call on Monday, criticised last week's failure to reach a joint agreement on the oil embargo.
"Look how many weeks now the European Union has been trying to agree on a sixth package of sanctions against Russia," he said on Thursday, noting that the EU pays Russia nearly 1 billion euros (850 million pounds) a day for energy.
Tensions are rising between Hungary and central Europe
A few weeks ago, when the idea of blocking oil through pipelines was floated, many member states rejected it on the grounds that it would give an unfair advantage to countries that can continue to get cheap Russian crude. Internal estimates suggest that Hungary could benefit from 35% cheaper oil from neighbouring countries. After several weeks in deadlock, however, a growing number of countries are looking for ways out.
"No deal or further delaying things would be the worst, but seeing blackmailing consequences is also disappointing," a senior EU diplomat said."
The issue has sharpened differences between Hungary and its allies in Central Europe. A senior Polish diplomat said he could not understand the logic of Budapest's policy on Ukraine and described opposition to the oil embargo as political rather than technical. "They have taken what is technically reasonable," they said."
Hungary's benefit of vetoing the Russian oil embargo
The British media notes that Hungary has been offered a two-year extension to adopt the oil embargo to allow time to rebuild refineries and create new oil routes from neighbouring Croatia.
Some are advising against a hasty agreement, as the proposed oil embargo was not expected to come into full effect until the end of the year. Others believe the delay sends a dire political message as Russian forces appear to be gaining the upper hand in the Donbas through relentless bombing and airstrikes.
Hungary's outraged statements
Hungary further angered some EU states when it said the issue should not even be discussed at Monday's summit.
"It would only highlight our internal divisions without offering a realistic opportunity to resolve differences," Orban wrote last week to European Council President Charles Michel, who is hosting the meeting."
At the same time, Budapest is seeking EU funds to upgrade its refineries, which can currently only take Russian oil. Orban complained that, in a recent European Commission draft outlining how the EU can move away from Russian fossil fuels, there were not enough details about EU funds for Central European states.
Russia-Ukraine-Hungary, the trifecta of problems for Europe
In that plan, known as RePowerEU, the commission made a controversial proposal to allow member states to sell surplus carbon credits that could make it cheaper to burn fossil fuels. It also proposed a voluntary transfer of funds from other parts of the EU budget.
However, some of the funds for decarbonisation would be placed in a Recovery Plan, which is not available in Hungary because of long-standing concerns about the rule of law. The country was denied 7.2 billion euros in funds from the EU's Covid-19 recovery fund because it failed to satisfy EU officials that it can ensure the money is spent properly.
Hungary is seen as vulnerable as the Druzhba pipeline - which translates as "friendship" - crosses Ukraine. Last week, a senior Ukrainian official described the section of the pipeline leading to Hungary as "significant leverage." Olena Zerkal, an adviser to Ukraine's energy minister, said it would be "appropriate for something to happen on this pipeline," according to comments reported by Ukrainian news agency Ukrinform.
Finally, Hungary's opposition means that other measures in the EU sanctions package, including tightening restrictions on Russian banks and imposing asset freezes and travel bans on dozens of high-ranking Russians, including Alina Kabaeva, who is rumored to be the Russian president's companion, and the head of the Russian Orthodox Church, Patriarch Kirill, have not taken effect.
Source: in.gr
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