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Oil embargo tests the limits of EU sanctions

Hungary is demanding energy solutions - probably in the billions - before the EU imposes oil sanctions on Russia. This could also make it difficult to intervene in gas.
31. MAJ 2022 10.50
Energi
Olie
Politik

Hungarian Prime Minister Viktor Orbán is not a popular figure in Brussels. Time and again he has tested the EU system and the patience of other EU countries. And in recent weeks he has been the biggest obstacle before a compromise was reached on Monday evening on the sixth package of sanctions against Russia.

However, the agreement exempts Hungary from stopping its imports of Russian oil via pipelines for the time being. And it could be expensive to get Hungary on board. Orbán made that clear when he arrived at the EU summit on Monday.

- Hungary's position is very simple, because energy is a serious issue: We need solutions before we implement sanctions, said Viktor Orbán.

So far, the EU - with the support of Hungary - has been able to implement the first five packages of sanctions at a rapid pace. Since they did not include a ban on Russian oil or gas, EU countries, including Hungary, have been able to say yes to the sanctions and then find solutions to the sanctions problems afterwards.

Even more dependent on Russian gas

But according to Orbán, that approach does not work when talking about an embargo on Russian oil. And the same will most certainly apply to a possible embargo on Russian gas. Here, Hungary is even more dependent than it is with oil. The same is true of large EU countries such as Germany.

An EU diplomat with insight into the negotiations acknowledged even before Monday's compromise that it will be significantly more difficult to implement new sanctions from now on.

- There is no doubt that the path is getting narrower and narrower, and it hurts more and more, said the diplomat.

Orbán made it clear even before the meeting that Hungary could say yes to a ban on Russian oil. But that requires that other energy solutions be found first. This could be costly for European taxpayers.

Hungarian Foreign Minister Péter Szijjártó has previously stated that Hungary needs European investments of between 15 and 18 billion euros to restructure its energy supply.

Other countries such as Greece also tried to get exemptions. Greece has fought for its shipping of Russian oil because the sanctions are now seriously affecting the economy.

- I don't dare say whether we will reach a point where we can also adopt sanctions on gas, said the EU diplomat, adding:

- We must admit that it has become somewhat more difficult. And it will not help Hungary's willingness to compromise if this package is just the step before gas sanctions, because it is even more sensitive for Hungary, said the EU diplomat.

Expect more sanctions

Denmark has always fought for the harshest possible sanctions against Russia. Unlike several other countries, Denmark is not so dependent on Russian energy. Prime Minister Mette Frederiksen (S) insists that the ambition should be to move further down the sanctions track in order to put as much pressure as possible on Russia.

- This is the sixth sanctions package being negotiated, and I also expect a seventh.

- We know that Hungary and a few other countries are in a different situation because they are very dependent. We must find a solution for that, said Mette Frederiksen on the way to the meeting.

Ritzau

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https://www.doi.dk/en/havenergi/artikel/oliestop-tester-graensen-for-eu-s-sanktioner

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