Hungary rejects EU plan to ban Russian oil

Bloc divided on sanctions as Hungary rejects package that it says would destroy its energy security

A plan by the EU to ban all oil imports from Russia has been rejected by Hungary, leaving the bloc split over a key package of sanctions against Russia. Shortly after proposals were published by the European Commission, Péter Szijjártó, the Hungarian foreign minister, said it would “obliterate” his country’s energy security. Brussels wants the import of Russian crude oil to be phased out within six months, and refined products by the end of the year.

AN EU PLAN to ban all oil imports from Russia has been rejected by Hungary, leaving the bloc split over a key package of sanctions to put pressure on Russia.

Shortly after proposals were published by the European Commission, Peter Szijjarto, the Hungarian foreign minister, said it would “obliterate” his country’s energy security. Every EU state has the power to veto sanctions.

Ursula von der Leyen, the president of the commission, had proposed a total embargo on Russian oil yesterday morning. However, it only served to highlight divisions among EU member states on how to tackle Russia’s invasion of Ukraine.

Brussels wants the import of Russian crude oil to be phased out within six months, and refined products by the end of the year. Slovakia and Hungary are almost 100 per cent reliant on Russian oil and were granted delays in phasing it out by the end of 2023.

Mr Szijjarto said this still was not enough, and Hungary would only approve the ban if given a total exemption on oil imports through pipelines.

He said: “This is not a question of lack of political will, or of intention or timing, but simply this is the physical, geographical, and infrastructural reality.”

Viktor Orban’s Hungarian government, the most pro-russian EU administration, has consistently said it will never support oil and gas import bans.

Hungary had earlier appeared to be ready to support an EU oil ban by the end of the year that allowed it and Slovakia to phase out imports more slowly, and its rejection has led to questions as to why the commission proposed the plan.

Mrs Von der Leyen had outlined her plan to cut oil imports as part of the EU’S sixth round of sanctions against Russia.

During a speech at the European Parliament in Strasbourg, she said: “We maximise pressure on Russia, while at the same time minimising collateral damage to us.”

The Czech Republic is also sceptical of the proposal regarding how countries should shoulder the burden of the embargo.

Brussels felt it was given the green light to put forward the oil embargo after a reluctant about-turn in Berlin.

Mrs Von der Leyen also spoke about the need for an “ambitious recovery package” which “should bring massive investment” for Ukraine to rebuild once peace is restored.

The EU’S sixth set of sanctions includes a removal of Russia’s largest bank, Sberbank, from access to the Swift international payment processing system. Sberbank is believed to handle at least a third of transactions in Russia.

Two other major banks will face the same measures and three dominant Russian media outlets will be banned from broadcasting and publishing, both on and offline, in the EU.

Bloomberg reported that the draft text of the EU’S new sanction package also includes a ban on property transactions with all Russian nationals, a measure to prevent oligarchs buying houses.

The sanctions package comes after Moscow cut off gas to Bulgaria and Poland last week, but some EU officials do not believe it goes far enough. Guy Verhofstadt, the MEP and former Brexit negotiator, said: “Slow sanctions don’t work. There needs to be an immediate ban on all fossil fuel imports and all Russian banks need to be cut from Swift.”

Jacob Funk Kirkegaard, a senior fellow at German Marshall Fund, said the measures were part of a longer term strategy from the EU to wean itself off Russian fossil fuels.

“The sanctions, as they are designed, are basically permanent. They’re not designed for an immediate impact on the battlefield,” he said.

The move coincided with the UK’S announcement that it will sanction three Russian war correspondents who promote Kremlin disinformation and propaganda. Liz Truss, the Foreign Secretary, said six Russian media outlets will also receive sanctions.