Oil embargo against Russia: Orban speaks of "frustrated nuclear bomb"

Created: 05/31/2022, 13:40

By: Tobias Utz, Tanja Koch

At a summit meeting, the EU states discuss further strategy in the Ukraine conflict - and agree on a compromise on the oil embargo against Russia.

+++ 1 p.m.:

Families can sleep peacefully tonight,” announced Viktor Orbán, because: “We have fended off the most hair-raising idea.” Hungary’s prime minister immediately commented on Facebook after the compromise decision on the oil embargo against Russia.

"We have reached an agreement that states that countries that receive oil through pipelines can continue to operate their economies under the previous conditions," Orbán continued.

The EU decision should cover more than two-thirds of Russian oil imports by the end of the year.

Viktor Orban on may 30 in Brussels.

© Nicolas Landemard / Le Pictorium / Imago Images

During the negotiations, there was evidently enormous resistance from the Hungarian government.

A total import ban on Russian oil would have been "unacceptable" for Hungary and "like a nuclear bomb," Orbán said in his message.

"But we managed to prevent that." Chancellor Olaf Scholz (SPD) nevertheless spoke of "drastic" sanctions against Russia.

However, there has now again been prominent criticism of his policy in the Ukraine conflict.

+++ 10.30 a.m .:

The Ukrainian Ambassador to Germany, Andriy Melnyk, described the compromise on the oil embargo against Russia as a “half step”.

Melnyk spoke to Deutschlandfunk after the joint decision at the EU summit.

Even with the decision made, supplies of Russian oil are still possible, the Ukrainian ambassador complained.

In this way, Vladimir Putin continues to receive millions of euros from Europe to finance Russia's war of aggression against Ukraine, Melnyk said.

For example, the Russian president is offering soldiers four times as much to hire them as mercenaries for the Ukraine war.

That is the Russian strategy to compensate for heavy losses.

Melnyk stressed that an immediate, full-scale oil embargo was needed to stop Putin.

Andriy Melnyk, Ukrainian Ambassador to Germany.

© Christian Spicker / Imago Images

Update from Tuesday, May 31, 12:30 a.m .:

The EU heads of state and government have agreed on an oil embargo for a large part of oil imports from Russia.

The decision will cover “more than two-thirds of oil imports from Russia” by the end of the year, said EU Council President Charles Michel late Monday evening (May 30) in Brussels.

The EU is thus cutting off the Kremlin "from a huge source of funding for its war machine," he emphasized in a first statement.

The EU countries have agreed on a limited oil embargo against Russia.

(symbol photo) © Monika Skolimowska / dpa

also read

"Increasingly feverish and unstable": Ex-secret service agent reports of "chaos" surrounding Putin

Putin seriously ill?

Lavrov comments on rumors

+++ 8.30 p.m .:

The plans for a complete European oil embargo against Russia are off the table for the time being due to a blockade from Hungary.

At a summit meeting in Brussels on Monday evening, it became apparent that the 27 EU countries would only agree to a limited ban on Russian oil imports, if at all.

Accordingly, only deliveries by sea would be prevented.

However, procurement via pipeline would still be possible.

Hungary could thus continue to be supplied overland via the huge Druzhba pipeline.

The EU Commission, under its President Ursula von der Leyen, proposed this compromise shortly before the summit in view of the previous blockade from Budapest.

Hungary's right-wing head of government Viktor Orban welcomed this, but made new demands.

Because of the war of aggression in Ukraine, which has been going on for more than three months, the EU has already imposed massive sanctions on Russia.

The Europeans are trying to present a united front to Moscow.

EU summit: Hungary blocks full oil embargo

Chancellor Olaf Scholz (SPD) said of the latest developments: "Everything I hear sounds as if there could be a consensus.

At the same time, he made it clear that Germany, like Poland, does not want to benefit from the exception for pipeline oil.

EU Council President Charles Michel and other summit participants were also optimistic that a compromise could be reached after weeks of dispute.

According to Dutch Prime Minister Mark Rutte, despite the exemption, the embargo would help cut Russian oil sales to the EU by around 90 percent.

Hungary's Prime Minister Orban described the compromise proposal as a good approach - but at the same time made new demands.

He demanded guarantees if, for example, pipeline oil could no longer be delivered to his country due to an accident.

Then Hungary must have the right to obtain oil by sea.

In addition, Hungary demanded financial commitments for the conversion of its oil infrastructure.

The government in Budapest put the cost of converting refineries to non-Russian oil at up to 550 million euros.

In addition, 200 million would have to be invested in order to supply the country in the future via a pipeline that begins on the Adriatic coast.

EU summit: Dispute over oil embargo against Russia – Hungary again blocks compromise

First report from Monday, May 30, 9:28 a.m.:

Brussels – The EU summit beginning on Monday (May 30) in Brussels could be overshadowed by the ongoing dispute over an EU oil embargo against Russia.

According to information from the German Press Agency, the government of Hungarian Prime Minister Viktor Orban prevented agreement on a new compromise proposal on Sunday (May 29) by making its approval dependent on financial commitments from the EU.

Countries like the Netherlands were also critical of the compromise proposal.

In order to solve the blockade in Hungary, which has been going on for weeks, the EU Commission had previously proposed only allowing imports of oil transported by ship to be phased out for the time being.

Hungary, which is heavily dependent on Russian energy sources, could continue to obtain oil from Russia via the huge Druzhba pipeline.

Refineries in Slovakia and the Czech Republic as well as in Poland and eastern Germany are also connected to the line.

However, Germany and Poland have already made it clear that they want to become independent of Russian oil supplies by the end of this year, regardless of an embargo.

Before then, the oil embargo shouldn't be fully in place anyway.

EU summit: unequal conditions regarding oil exports from Russia feared

According to information from EU circles, the financial commitments now being demanded from Hungary are primarily about funds that the country wants for the medium-term conversion of its oil infrastructure.

The government in Budapest estimates the costs for the necessary conversion of refineries to non-Russian oil at up to 550 million euros.

In addition, according to the information, 200 million euros must be invested in order to supply the country in the future via a pipeline starting on the Adriatic coast.

According to diplomats, however, the Netherlands have substantive problems with the compromise proposal.

They fear that there could be an unlevel playing field in the EU if some states continue to purchase relatively cheap pipeline oil from Russia.

This is also relevant because the port of Rotterdam has so far been an important transhipment point for Russian oil and business could initially collapse there as a result of the embargo.

The EU Commission's original proposal was to completely end imports of Russian crude oil in six months and oil products in eight months because of the Ukraine war.

Only Hungary and Slovakia should be given 20 months.

EU summit: emergency solutions without Hungary?

Against the background of the discussions, the CSU European politician Manfred Weber spoke out against far-reaching compromises in favor of Hungary.

"To be honest, I'm tired of the fact that the entire EU always has to follow the most hesitant decisions when it comes to sanctions," said the chairman of the Christian Democratic EPP Group of the German Press Agency.

If Hungarian Prime Minister Viktor Orban blocks the necessary unity against Russian President Vladimir Putin, intergovernmental solutions without Hungary would have to be sought.

"If there is no other way, then this path must not be ruled out," said Weber, referring to the option of agreeing on the oil embargo without including Hungary.

Orban must be shown that it cannot hold the rest of the EU hostage.

According to EU diplomats at the EU consultations on Sunday, Germany was basically ready to agree to the Commission's compromise proposal.

At the same time, the federal government made it clear that the exemptions are actually not in their interest.

(tk/tu with AFP/dpa)