The recent EU proposal calls for a six-month embargo on crude oil and an early January restriction on refined fuels from Russia.
This is part of the proposed sixth-round of sanctions in a series of retaliatory sanctions against Russia since the Russia-Ukraine crisis by the European Union. In addition to the oil ban, these sanctions also include cutting off three more Russian banks from the SWIFT system.
But because Hungary and Slovakia are significantly reliant on Russian oil, the EU had given them until the end of 2024 to comply with the sanctions, and the Czech Republic until June of that year.
For a decision to come to fruition, all 27 EU member states need to agree but since Hungary is nowhere close to agreement given the impact on its economy, the EU is on yet another instance of subversion.?
Hungary¡¯s new president, Katalin Novak said, ¡°Hungary is prepared to make sacrifices for peace and does not block its allies from making sacrifices either, but it will not agree to decisions that demand sacrifices from Hungarians that are greater than the amount of pain they would inflict on Russia¡±.?
Hungary being a landlocked country relies heavily on Russian oil and to convert its Sz¨¢zhalombatta refinery in Budapest, which can only take Russian oil, will take five years and hundreds of billions of forints.
Although Hungary supports Ukraine and is strong in its voice as part of the European Union, there are still differences. This is evident in PM Viktor Orban¡¯s speech in the parliament when he said, ¡®the EU leaders are convinced that these sanctions can force Russia to its knees¡¯ but added ¡®he could not remember any continental blockade ever being successful¡¯.
Other member states reacted to Hungary¡¯ position in an ambiguous fashion.. "Unfortunately, one member state is holding the entire union hostage," Lithuania's foreign minister, Gabrielius Landsbergis, said referring to Hungary.
Given Hungary¡¯s stance, Bulgaria has also begun to demand exemption from the proposed ban.
¡°Explained: Why is Hungary blocking sanctions on Russian oil?¡± The Indian Express, 10 May 2022. Accessed 17 May 2022.
Follain, John, and Jorge Valero. ¡°War in Ukraine: EU Considering Delay in Oil Sanctions as Hungary Resists.¡± Bloomberg.com, 12 May 2022. Accessed 17 May 2022.
¡°Hungary's new president condemns Russia's aggression, backs Ukraine's accession to EU.¡± Ukrinform, 14 May 2022. Accessed 17 May 2022.
Rankin, Jennifer. ¡°Hungary 'holding EU hostage' over sanctions on Russian oil.¡± The Guardian, 16 May 2022. Accessed 17 May 2022.