Ukraine seeks to disrupt Russian oil supply via Druzhba pipeline

Hungary and Slovakia Continue to Import Russian Oil Amid EU Loan to Ukraine

The European Union has provided a €90 billion loan to Ukraine, but the move has been criticized for its unintended consequences. Hungary and Slovakia, both landlocked countries that rely heavily on the Druzhba pipeline for their oil supply, have continued to import Russian crude despite the EU’s efforts to restrict trade with Russia.

The pipeline, which runs through Ukraine’s territory, was repaired after a pumping station was damaged in a Russian air raid in January. The repair work was completed on April 23, allowing Hungary and Slovakia to resume imports of Russian oil. The two countries received 9.25 million tonnes of crude last year, worth over $4 billion.

The EU has banned Russian seaborne crude and refined petroleum products since January and March 2023, respectively. However, an exception was made for pipeline crude “until the Council decides otherwise.” Other EU member states that sit on the Druzhba pipeline have largely weaned themselves off its oil, citing concerns over the safety of the supply chain.

Hungary’s Prime Minister Viktor Orban has expressed skepticism about Ukraine’s account of the damage to the pipeline. A team from Hungary was initially denied access to inspect the site, but a European team arrived later and was also kept away. The situation has been compared to a “geopolitical struggle” by Hungarian Prime Minister Robert Fico.

Energy experts have warned that shutting down refineries in Hungary and Slovakia would be too expensive and would result in significant economic losses. The two countries rely heavily on the Druzhba pipeline for their oil supply, making it difficult for them to find alternative sources of crude.

The EU loan to Ukraine has been seen as a bittersweet victory by many Ukrainians and Europeans, who are concerned about the unintended consequences of the trade restrictions.

Source: Al Jazeera