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Hungary expresses reservations about EU plans for oil embargo

2022-05-04T11:43:41.995Z


The EU's planned boycott of Russian oil already includes generous exemptions for Hungary. However, the country has now raised concerns. You could jeopardize the embargo.


Enlarge image

Workers at a receiving station of a leg of the Druzhba oil pipeline south of Budapest

Photo: BELA SZANDELSZKY / AP

The oil embargo against Russia presented by the EU Commission on Wednesday morning should gradually come into force by the end of the year.

However, all member states still have to agree to it - and only hours after the presentation, Hungary, a country from the Community, has expressed strong reservations about the plans from Brussels.

"We see no plans or guarantees on how the transition could be managed based on the current proposals and how Hungary's energy security could be ensured," a government spokesman said.

After his re-election in early April, Hungarian Prime Minister Viktor Orbán announced that he would veto a possible oil or gas embargo against Russia.

The draft submitted by the EU Commission already provides for comprehensive exemptions from the oil embargo for Hungary and Slovakia.

They still get the bulk of their oil from Russia - and fear, among other things, because of the lack of access to the sea that they will not be able to find alternatives as quickly as other countries.

The text therefore states that because of the high dependence of both countries on Russian oil, the respective "competent national authority can grant an exemption from the ban for a longer period of time under certain conditions".

For existing oil supply contracts with Russia, this should be possible until the end of 2023.

Habeck: "We cannot guarantee that it will not falter"

In view of the reservations now expressed by Hungary, the EU is still facing difficult rounds of negotiations even after the plans have been presented in Brussels.

While Hungary has criticized the decision, others don't go far enough.

"The fact that enforcement should take six months and that loopholes are necessary for Hungary and Slovakia makes the package significantly weaker," said German Green MEP Rasmus Andresen.

The existing plan could also have consequences for Germany.

Sufficient transition periods are provided, said Economics Minister Robert Habeck.

Nevertheless, there could be problems, says the Green politician: "We cannot guarantee that things will not stagnate, especially regionally," he says, referring to East Germany.

Russian oil is mainly processed in East Germany, especially in Schwedt.

A solution is being sought for the PCK refinery, which is currently under the control of the Russian Rosneft concern.

At noon, Habeck also repeated his fears that an import ban would cause energy prices to rise further.

“Of course, a shortage of oil on the world market initially leads to higher prices,” he said at the end of the closed conference of the Federal Cabinet at Meseberg Castle in Brandenburg.

The planned oil embargo may already have been partly priced in by the markets.

"The markets govern with foresight," said the Vice Chancellor.

»But of course the prices can also go up significantly.«

Apr/AFP/Reuters

Source: spiegel

All business articles on 2022-05-04

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