Hungary and Slovakia seek EU mediation with Ukraine

Hungary and Slovakia have formally requested the European Commission to mediate discussions with Ukraine following Kyiv's decision to place Russian oil company Lukoil on a sanctions list. This action has halted oil supplies to both countries, which rely heavily on Lukoil for their energy needs. Hungary's Foreign Minister Péter Szijjártó revealed that Hungary imports approximately 2 million metric tons of oil from Lukoil annually, constituting about one-third of its total oil imports. The situation escalated last week when both countries reported a cessation of oil deliveries from Lukoil through Ukraine. In response, Szijjártó engaged in talks with the Ukrainian foreign minister, while the European Commission confirmed it is reviewing the mediation request. Meanwhile, Naftogaz, Ukraine's state energy firm, acknowledged the disruption in oil supplies from Lukoil, although it noted that transit volumes remained consistent with previous periods. In light of the supply issues, Hungary is exploring alternative oil imports from Croatia via the Adria pipeline, while Slovakia's options are limited to receiving oil through Hungary. Despite the ongoing conflict in Ukraine and EU sanctions on Russian crude, both Hungary and Slovakia continue to receive natural gas and oil from Russia. They have been granted exemptions from these sanctions to facilitate a smoother transition to alternative energy sources. Additionally, both countries have been supplying energy to Ukraine, with Hungary providing 42% of its electricity imports last month. Slovakia's Prime Minister Robert Fico has also highlighted his country's role in supplying diesel to Ukraine, expressing concerns over the implications of sanctions on their energy security.