The EU is preparing to gather up to 40 billion euros ($44.5 billion) in loans for Ukraine as Budapest keeps disrupting plans on a joint loan with the U.S., the Financial Times reported on Sept. 16, citing sources and a draft proposal.
Ukraine placed sanctions on Russia’s Lukoil, blocking the company from transiting oil through Ukraine to Hungary and Slovakia. This move heightened tensions as Hungary accused Ukraine of endangering its energy independence.
Spain prevented Hungary from buying Talgo, a Madrid-based train manufacturer, due to its potential usefulness for Ukraine's reconstruction, the Financial Times reported on Sept. 12, citing undisclosed officials.
Hungary does "not want more weapons in Ukraine" and does not want "an escalation of the war," Hungarian Foreign Minister Peter Szijjarto wrote on Facebook on Aug. 29 after an informal meeting of EU foreign ministers.
Russian crude exports to Hungary and Slovakia remained within norms in July as the sanctioned Lukoil oil was offset by supplies from another Russian company, Tatneft, Bloomberg reported on Aug. 27, citing an undisclosed source.
In June, Kyiv imposed sanctions blocking Lukoil, one of the largest oil companies in Russia, from transiting crude oil through the Druzhba pipeline running through Ukrainian territory.
Hungary renewed its calls for a "ceasefire" in response to Ukraine's ongoing incursion into Russia's Kursk Oblast, Prime Minister Viktor Orban's chief of staff, Gergely Gulyas, told reporters on Aug. 22.
Budapest passed the decree on Aug. 21, limiting government-subsidized housing only to those Ukrainians who fled the territories directly affected by active hostilities.
Budapest is close to finalizing talks on "balanced" oil supply after Ukraine blocked the transit of Russian oil through the Lukoil pipeline, Hungarian Foreign Minister Peter Szijjarto said on Aug. 21 after a government meeting.
Hungary's decision to ease entry rules for Russians "may constitute a serious security risk," leaders of Nordic and Baltic countries said in a joint letter to European Commissioner for Home Affairs Ylva Johansson on Aug. 16.
The Hungarian government’s arguments against Ukraine’s sanctions on Russian oil company Lukoil are falling apart. Hungary accused Ukraine of “blackmail” and endangering its energy security after Ukrainian sanctions blocked Lukoil, Russia’s second-largest oil company, from transiting crude oil through the Druzhba pipeline in June. Hungary and Slovakia
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.
"If the Hungarian government refuses to change its policy, the Commission and all EU representatives should question Hungarian presence in the Schengen by introducing new measures to safeguard European citizens, including new controls at Hungarian borders if necessary," the letter read.
German politicians are demanding an EU-wide response after Hungary simplified entry requirements for Russian and Belarusian citizens in July, German news outlet Bild reported on Aug. 3
The sanctions imposed by Ukraine against Lukoil do not affect the current transit of oil through the Druzhba pipeline, as Lukoil is not the official owner of this oil, according to the European Commission.
Earlier in July, various media sources reported that Hungary had quietly changed the rules for its National Card program to allow Russian and Belarusian citizens to enter the country in a streamlined visa-acquisition process that does away with enhanced security checks or other restrictions.
Hungary and Slovakia turned to the EU earlier this month as Ukrainian sanctions effectively halted the supplies from the Russian Lukoil company to the two Central European countries through the Druzhba pipeline.
Hungary is subtly relaxing its entry requirements for Russian and Belarusian citizens, who are now included in the National Card program which allows them to work in Hungary for up to two years.
"I do not understand why Hungary wants to remain a member of organizations that they dislike so much and that supposedly mistreat them," Polish Deputy Foreign Minister Wladyslaw Teofil Bartoszewski said.
Russia blamed the U.S. and U.K. for blowing up the Nord Stream pipelines connecting Russia and Germany in September 2022. Investigations have so far failed to find conclusive evidence, and both Denmark and Sweden dropped the case in February 2024. The German investigation is still ongoing.
Hungary's record loan came amid a record increase in its public debt to 140 billion euros ($152 billion), 73.5% of GDP, and a budget deficit of 6.7% of GDP, while the country has no access to European Union funds due to the conflict with Brussels.
The Slovak leadership also threatened unspecified repercussions against Ukraine, reminding Slovakia's key role as an electricity supplier amid Ukraine's energy deficit.
The following is the July 23, 2024 edition of our Ukraine Business Roundup weekly newsletter. This version is condensed as the author was out of the office. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here. Decentralizing a power grid is a
"The Commission has three days to execute our request, after which we will bring the issue to court," Hungarian Foreign Minister Peter Szijjarto said, calling Ukraine's decision "an unacceptable move," which "violates the EU-Ukraine Association Agreement."
The restrictions have created supply shortages in Budapest, which depends on Russia for 70% of its oil supply, with Lukoil providing half of that volume, according to Politico.
During an interview on state radio, Orban said that the EU needs to join China and the U.S. in light of potential Trump's return to power to press Russia and Ukraine to start peace negotiations, Bloomberg reported.
Ukraine's hardened sanctions against Lukoil, Russia's second-largest oil producer, has stopped the company's deliveries to Hungary, Hungarian Foreign Minister Peter Szijjarto claimed on July 16.
Hungarian Prime Minister Viktor Orban said that the EU should restore diplomatic relations with Russia, listing it as one of the conclusions of his supposed "peace mission," Bild reported on July 16, citing Orban's letter it had obtained.
"In light of recent developments marking the start of the Hungarian Presidency, the President (Ursula von der Leyen) has decided that the European Commission will be represented at senior civil servant level only during informal meetings of the Council," said von der Leyen's spokesperson Eric Mamer.
Hungarian Prime Minister Viktor Orban presented Budapest's proposal on how achieve peace in Ukraine in a letter sent to European leaders, a Hungarian government official said in an interview published on July 15.
"If there's a formal foreign affairs council, organized by the high representative (Borrell) the same day, the ministers won't be able to go to Budapest," one diplomat told Politico.
Orban refused to back military support for Ukraine during the summit on July 11 and suggested that Kyiv should not join the alliance, according to Bloomberg’s sources
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