Hungary Scuppers EU Maritime Services Ban for Russian Oil Cargoes
The Russian-aligned governments of Hungary and Slovakia have defeated an EU proposal to impose a full ban on maritime services for Russian oil trading - a ban which would have supplanted the "G7 price cap" mechanism championed by former U.S. Treasury Secretary Janet Yellen, which has allowed the continuation of Western shipping for Russian oil under specific pricing conditions.
Hungary's authoritarian leader, Victor Orban, declared Monday that he could no longer support the latest EU sanctions package on Russia - as he had previously pledged to do in European Council proceedings - because of the interruption in service on the Druzhba pipeline, which delivers Russian oil to Hungarian refineries via Ukrainian territory. Orban accused Ukraine of failing to repair the pipeline in a timely manner after it was damaged by a Russian attack.
The affected European Council package would have included a 90 billion euro loan for Ukraine, needed to keep Kyiv's government solvent past April; a ban on all EU maritime services for Russian oil trading; and a variety of other sanctions on Russia-linked entities.
The maritime services ban was also opposed by Greece and Malta, which have shipping interests linked to Russian trading. "Compliant" tankers (including Greek-controlled tonnage) currently account for just one fifth of Russia's oil exports; the overwhelming majority is delivered by underinsured, little-regulated "shadow fleet" vessels which would be unaffected by the proposed ban, and would be capable of picking up the balance.
European leaders expressed displeasure with Orban for backtracking on Hungary's previous commitment in the European Council.
"I really regret that we didn’t achieve agreement today, considering that tomorrow is the sad anniversary of the start of the [Russian invasion], because we need to send a strong signal to Ukraine that we keep on supporting Ukraine," top EU diplomat Kaja Kallas said in a statement. "[Hungary's stance is] not really in accordance with the sincere cooperation clause that we have in the [EU] treaties."
"I am determined, because I know that the political commitments and the promises made at the last European Council will be honored. It cannot be otherwise," French Prime Minister Emanuel Macron said Monday.
The EU will continue to work on the package.
Ihor Chalenko, head of the Center for Analysis and Strategies in Kyiv, told Radio Free Europe that Orban's objections over the Druzhba pipeline outage had more to do with politics than with oil supplies.
that matters most
Get the latest maritime news delivered to your inbox daily.
"What is happening now [with the EU sanctions package] is merely an attempt to use the circumstances to effectively block direct aid to Ukraine in the amount of 90 billion euros and to block increased pressure on the Russian aggressor. This has nothing to do with the economic situation in Hungary and Slovakia," he said.
Orban faces a closely-contested election coming in April, one of the few real challenges to his party's gradual consolidation of power in Hungary since gaining a parliamentary majority in 2010. Right-wing opposition leader Peter Magyar is gaining in the polls by questioning Orban's commitment to Hungarian nationalism and Euro-skepticism, and Magyar's party is currently showing a lead of 10 percentage points, despite de facto restrictions on media access for the political opposition.
Content Original Link:
" target="_blank">
