Hungary threatens EU with blocking 6.5 billion euros over Ukraine

(Patria) - Hungary will block EU funds for member states that have sent ammunition to Ukraine as long as Kyiv does not allow oil from the Russian company Lukoil to pass through a pipeline on its territory, Hungary's foreign minister said yesterday.

Slovakia and Hungary said earlier this month that they had stopped receiving oil from Lukoil via the Druzhba pipeline, after Ukraine last month imposed a ban on the transit of products from the Russian company.

Also, Hungary's Ministry of Energy, in response to the situation, formed a working group related to supply security, which "reviewed the steps taken so far and possible next steps," the ministry said in a statement.

- As long as Ukraine does not resolve this issue, everyone can forget about the payment of 6.5 billion euros from the European Peace Facility (EPF), as compensation for arms shipments - said Hungarian chief diplomat Peter Szijjarto, as reported by television channel ATV.

Ukraine's Ministry of Foreign Affairs did not immediately respond to a request for comment.

Kyiv claims it has blocked Lukoil's oil, but that the total flow through the pipeline, which is also used by other suppliers, has not decreased.

The Druzhba pipeline, which connects Russia with former socialist bloc countries in Eastern Europe, has continued to operate during more than two years of war in Ukraine, even as the EU has moved away from other energy sources from Russia.

Hungary has remained particularly dependent on Russian oil and claims it cannot supply its refineries without it.

Hungary and Slovakia on Monday asked the European Commission to mediate in a consultation process with Ukraine. The process would allow a court to decide on the matter, unless the EU's executive body responds within three days.

The EPF, created in 2021, acts as an instrument for reimbursing EU member states that have sent ammunition to other countries.

Since the Russian invasion of Ukraine in 2022, member states that have sent weapons to Ukraine can seek compensation from the fund.

However, Hungary has been blocking the payment of the next tranche of money from the EPF for more than a year, citing various difficulties.