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Hungarian CEO confident in country’s oil supply despite Ukraine’s Lukoil transit block

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Hungarian CEO confident in country’s oil supply despite Ukraine’s Lukoil transit block
Photo for illustrative purposes. A Lukoil fuel storage facility is being seen near Sofia Airport in Sofia, Bulgaria, on June 11, 2024. (STR/NurPhoto via Getty Images)

Hungary will not face oil shortages due to Ukraine's decision to block Lukoil PJSC's crude transit, according to Zsolt Hernadi, CEO of Hungarian oil and gas conglomerate MOL Group.

“Let’s not panic,” Hernadi said to audience members at a conference on Monday.

He said that Hungary has 90 days of strategic reserves, with the option to buy Russian crude via Croatia.

This statement contradicts concerns raised by Prime Minister Viktor Orban's government and Slovakia, which sought EU intervention.

However, the EU dismissed these worries, stating that Ukraine’s sanctions against Lukoil will not impact transit operations using the Druzhba pipeline.

EU ambassadors are not sympathetic to Budapest's and Bratislava's complaints about Kyiv blocking the flow of Russian pipeline oil, Politico reported on July 29, citing behind-the-scene talks among European diplomats.

While EU officials publicly promised to review the matter, they privately voiced exasperation as neither Hungary nor Slovakia managed to reduce their dependency on Russian oil while many other member states did.

Fico criticizes Kyiv’s sanctions against Russian oil in call with Shmyhal
“Slovakia doesn’t intend to be a hostage to Ukrainian-Russian relations,” Slovak Prime Minister Robert Fico reportedly said.
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Sonya Bandouil

North American news editor

Sonya Bandouil is a North American news editor for The Kyiv Independent. She previously worked in the fields of cybersecurity and translating, and she also edited for various journals in NYC. Sonya has a Master’s degree in Global Affairs from New York University, and a Bachelor’s degree in Music from the University of Houston, in Texas.

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