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    Home > Chemicals Industry > Petrochemical News > US media: Accommodation to Hungary, the European Union or postpone restrictions on pipeline oil imports from Russia

    US media: Accommodation to Hungary, the European Union or postpone restrictions on pipeline oil imports from Russia

    • Last Update: 2023-02-20
    • Source: Internet
    • Author: User
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    Hungary and other countries' dependence on Russian energy has become a "roadblock" for the EU to promote the Russian oil embargo, so the EU is still constantly adjusting its plan and trying to promote the implementation
    of the resolution as soon as possible.

    Bloomberg quoted sources as saying on the 29th that in order to break the deadlock and promote the adoption of the plan, the EU sent a revised sanctions plan
    to member states on the 28th.
    The plan proposes to ban the import of seaborne oil from Russia, but would delay restrictions on the Druzhba pipeline, giving Hungary more buffer time to find solutions
    to meet its energy needs.

    The Druzhba pipeline is Russia's largest pipeline system for transporting crude oil to Central and Eastern European countries and the longest pipeline in the world
    .
    Among them, the southern part of the route is transported to Hungary through Ukraine, supplying Hungary with up to 65% of its oil consumption, which can be called the "main artery"
    for Hungary to obtain oil.

    Hungary has repeatedly opposed the EU embargo on Russian oil, and its heavy dependence on this pipeline is an important reason
    .
    In addition, Hungary issued a condition to the EU on the 26th to agree to sanctions, requiring the EU to provide 750 million euros in the short term to upgrade the country's oil refining facilities, and in the long run, Hungary needs up to 18 billion euros to get rid of its dependence on
    Russian oil.
    And in the face of a tough Hungary, European Commission President Ursula von der Leyen admitted that the EU may not be able to reach an agreement on an embargo on Russian oil next week.
    .
    .

    Bloomberg: The EU plans to release pipeline oil to break the deadlock in sanctions against Russia

    For the time being, there are no restrictions on the transportation of oil from the Druzhba pipeline

    According to the source, the European Commission submitted a revised sanctions plan
    against Russia to the governments of member states on the 28th.
    The plan will not restrict the flow of oil
    from the Druzhba pipeline for the time being.
    The plan also mentions that EU member states will gradually stop importing seaborne oil from Russia within 6 months and refined oil
    products from Russia within 8 months.

    Bloomberg said the proposal would give countries such as Hungary more time to find solutions
    to meet their energy needs.
    In addition to Hungary, Bulgaria will receive a transition period until June or December 2024 and Croatia will receive a vacuum wax oil (VGO) import exemption
    .

    The plan also proposes to restrict Russian oil
    exports to other member states or to third countries through the Druzhba pipeline.

    EU member state officials are expected to meet on the 29th to discuss the revised plan, and some member states are actively promoting an agreement
    before EU leaders meet in Brussels on the 30th to discuss the Russian-Ukrainian conflict.

    Under EU rules, a proposal by the European Commission requires the unanimous consent of 27 member states to enter into force
    .
    Due to the high dependence of some EU countries on Russian energy, there have been serious differences
    within the EU on the additional sanctions against Russian energy.
    Some members oppose the distinction between seaborne oil and pipeline oil, arguing that the move would constitute an "unfair" blow to
    countries' energy supplies.

    Last year, Russia delivered about 720,000 barrels of crude oil
    a day to European refineries through major pipelines to Europe.
    By comparison, Russia transports 1.
    57 million barrels
    per day by sea from Baltic, Black and Arctic ports.

    Russian oil pipelines (Photo by Russia Today Business Daily)

    There are constant divisions within the EU

    On May 4, the European Commission submitted a proposal for a sixth round of sanctions against Russia, including a total ban on the import of Russian oil by the end of this year, Hungary is one of several EU member states that prevented the EU from imposing a sixth round of sanctions on Russia, and its domestic energy supply is extremely dependent on Russia, of which natural gas is as dependent on Russia as high as 85%.

    Hungarian Minister of Foreign Affairs and Foreign Economic Affairs Scialto said on May 3 that Russian oil exported to Hungary through the Druzhba oil pipeline accounts for about 65% of Hungary's total oil consumption, and there is currently no alternative oil supply line
    .

    Siarto also believes that the impact of the Russian oil embargo on the Hungarian economy is comparable to an atomic bomb
    .
    The only way to reach an agreement is that the ban applies only to oil transported at sea, returning to Hungary's original proposal to "exclude oil transported by pipelines"
    .

    On May 26, Hungarian Prime Minister Orbán's chief of staff, Gureas imposed conditions
    on the European Union.
    He said Hungary needed a massive infrastructure upgrade to get rid of Russian oil
    .
    If Hungary is to agree to the sanctions package, the EU needs to invest 750 million euros in the country in the short term to upgrade its refining capacity, and in the long term, Hungary needs up to 18 billion euros to wean itself off Russian oil
    .
    If the EU is unable to provide a solution, Hungary will ask for an exemption from the implementation of sanctions
    against Russia.

    This is in contrast to the attitude of
    Germany.
    German Economy Minister Habeck said at the Group of Seven (G7) meeting on the 26th that the EU can still reach an agreement on the Russian oil embargo in the next few days, and if it cannot reach an agreement, it can also seek "other means"
    .

    German Deputy Chancellor and Minister of Economy and Climate Protection Habeck (Greens) even expressed his support for the EU's decision
    to impose a ban without Hungary's participation.
    "If the president of the European Commission says that we can impose sanctions without counting Hungary, the other 26 member states, then this is the route
    that I have always supported.
    "

    European Commission President Ursula von der Leyen was not in the mood, saying the EU could discuss next week how much the other 26 member states are willing to invest in Hungary, and she would talk to
    Orban in the coming days.
    "Objectively speaking, this is a huge and difficult technical problem, but we have to move
    forward.
    "

    In the face of a determined Hungary, von der Leyen admitted that she no longer expects an agreement
    to embargo Russian oil next week.

    In fact, with the opposition of Hungary and other countries, this is not the first time that the EU has reported the adjustment
    of the sanctions program.

    An EU diplomat revealed to the "politician" news network in the middle of this month that there is already an idea within the EU to separate the "oil ban" from the "6th round of sanctions" against Russia, so that other sanctions that will be "fully agreed" will be implemented
    first.
    The report quoted EU diplomats as saying, "We do have an idea that is to spin up the agreement on 90 percent of the [sanctions against Russia] agreement and then move forward with everything
    except the oil ban.
    " ”

    The report also noted that another possible option for the EU is to break up the most controversial part of the oil ban and move forward with other parts
    of the plan that Hungary may support.

    In response to the "oil ban on Russia" repeatedly mentioned by the European Union, Russian Foreign Ministry spokeswoman Zakharova previously said that she did not want to make a long statement
    on this.
    Zakharova warned that "if they want to seriously damage us, let them kill themselves, we will miss it"
    .

    Kremlin press secretary Dmitry Peskov responded on May 4 that sanctions against Russia by the United States, Europe and other countries are a double-edged sword
    .
    While trying to inflict harm on Russia, these countries will also pay a huge price
    .

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