What's happened
Hungary's MOL has reached a deal to transport Russian oil through Ukraine, circumventing a Ukrainian ban on Lukoil products. This arrangement, supported by Slovakia, raises concerns about EU sanctions and energy security amid ongoing tensions from the Ukraine conflict.
Why it matters
What the papers say
According to Gabriel Gavin from Politico, the deal allows MOL to take ownership of Russian crude, effectively bypassing Ukrainian sanctions. Ukrainian Prime Minister Denys Shmyhal emphasized that MOL's ownership of the oil is a positive development, while Hungarian officials praised the technological solution. However, the European Commission maintains that energy security is not threatened by these arrangements, as stated by spokesperson Olof Gill. The Moscow Times notes that Hungary's Prime Minister Viktor Orban has maintained strong ties with Russia, raising concerns about the EU's unified stance against Moscow.
How we got here
In July, Ukraine barred Russian energy firm Lukoil from using its pipeline, prompting Hungary and Slovakia to seek alternatives. MOL's recent agreement allows it to take ownership of Russian crude at the Belarus-Ukraine border, ensuring continued oil flow despite sanctions.
More on these topics
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Viktor Mihály Orbán is a Hungarian politician who has been Prime Minister of Hungary since 2010; he was also Prime Minister from 1998 to 2002.
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The PJSC Lukoil Oil Company is a Russian multinational energy corporation headquartered in Moscow, specializing in the business of extraction, production, transport, and sale of petroleum, natural gas, and petroleum products.
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Hungary is a country in Central Europe. Spanning 93,030 square kilometres in the Carpathian Basin, it borders Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croatia and Slovenia to the southwest, a
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Ukraine is a country in Eastern Europe. It is the second-largest European country after Russia, which borders it to the east and northeast.
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Slovakia, officially the Slovak Republic, is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the southwest, and Czech Republic to the northwest.