Hungary and Slovakia oppose EU sanctions banning maritime services for Russian oil, complicating efforts to replace the G7 price cap.
The governments of Hungary and Slovakia have opposed a new sanctions proposal that envisions banning all EU maritime services related to Russian oil trade. This proposal would replace the 'G7 price cap' mechanism advocated by former U.S. Treasury Secretary Janet Yellen, which allows Western vessels to continue transporting Russian oil under certain price conditions.
Hungarian Prime Minister Viktor Orban announced on Monday that he could no longer approve the latest EU sanctions package, which he had previously promised to support during European Council discussions. Orban cited the interruption in the Druzhba pipeline, which transports Russian oil to Hungarian refineries via Ukraine, as the reason for his change in stance. He held Kiev responsible for the delayed repairs of the pipeline, which is said to have been damaged in Russian attacks.
The package discussed at the European Council includes a €90 billion loan program aimed at ensuring Ukraine's financial stability after April, a ban on all EU-based maritime services for Russian oil trade, and additional sanctions targeting Russia-linked institutions.
Greece and Malta, which have significant maritime interests related to Russian oil trade, also objected to the proposed ban on maritime services. Currently, only about one-fifth of Russian oil exports are transported by Western-insured and compliant tankers. The remaining large portion is carried out by 'shadow fleet' vessels with weak insurance and oversight conditions. Therefore, critics argue that implementing a complete ban may have limited effects on constraining Russia's exports.
EU leaders expressed their discomfort over Orban's backtracking from his previous commitment. EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, stated that she was saddened by the inability to reach an agreement on the eve of the anniversary of Russia's invasion of Ukraine, adding that Hungary's stance does not align with the principle of sincere cooperation in EU treaties.
French President Emmanuel Macron emphasized his belief that the political commitments made at the recent European Council would be fulfilled, stating, 'There cannot be any other way.'
The EU plans to continue negotiations on the sanctions package.
Igor Chalenko, head of the Analysis and Strategy Center based in Kiev, argued in a statement to Radio Free Europe that Hungary's objections regarding the interruption of the Druzhba pipeline are more connected to political calculations than energy supply concerns. Chalenko warned that the current situation risks effectively blocking the planned €90 billion direct support for Ukraine and weakening the pressure on Russia.
The elections expected to take place in Hungary in April, which are anticipated to be contentious, also add a political dimension to the process. It is reported that right-wing opposition leader Peter Magyar is rising in the polls, appearing to lead by about 10 points despite his party's restrictions on media access. This scenario is considered one of the most serious political tests for Orban, who has consolidated his power since 2010.
Source: SeaNews Türkiye
