• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 6 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 hours The Federal Reserve and Money...Aspects which are not widely known
  • 1 hour "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 hours Uniper is over - Germany (Government) buys the Company
  • 1 hour "How BlackRock Conquered the World" by James Corbett (all 3 parts)
  • 7 hours "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 13 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 6 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 13 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
City A.M

City A.M

CityAM.com is the online presence of City A.M., London's first free daily business newspaper. Both platforms cover financial and business news as well as sport and…

More Info

Premium Content

What Will It Take For Hungary To Agree On A Russian Oil Embargo?

  • The European Union is racing to iron out the final terms for a potential embargo on Russian oil.
  • Hungary has been vocal in its opposition to the oil ban.
  • Hungary is calling for greater energy investment before it agrees to a full embargo.

Hungary has maintained its demands for energy investment before it agrees to a Russian oil embargo with its Western allies.

“Solutions first, sanctions afterward,” Hungary’s Justice Minister Judit Varga said ahead of fresh talks with the European Union (EU) on the sixth package of sanctions against Russia after it invaded Ukraine.

The Hungarian government has been clashing with multiple EU member states and its executive arm, the European Commission, which has been calling for swift approval of more energy sanctions against the Kremlin following the invasion of Ukraine.

The European Commission proposed the sixth package of sanctions earlier this month, including a six-month phase out of Russian oil supplies.

However, Hungary’s opposition to the measure has prevented the ban from being confirmed – as it requires the unanimity of all the 27 member states to approve it.

Several EU member states including Czechia and Slovakia have secured extended phase-outs of two years rather than six months, but Hungary is also looking for an exemption for piped oil supplies, or compensation.

However, Robert Habeck, Germany’s Economy Minister has hinted his country could vote through a ban excluding Hungary.

France, Lithuania, Belgium, and Ireland have urged a compromise before the summit during closed-door discussions among EU diplomats last week, sources said.

Sources told the news agency Reuters that Sweden has suggested dropping the oil embargo to move ahead with other new sanctions if that was necessary.

This includes the exclusion of Sberbank and other Russian lenders from the SWIFT banking system and blacklisting more individuals held responsible for the war.

Related: Oil Markets Are Bracing For A Slew Of Bullish News

However, an oil ban remains the centerpiece of a proposed sixth package of sanctions.

The bloc is currently dependent on Russia for around 25 percent of its oil supplies.

Hungary is heavily reliant on its crude stocks and has revealed it would need €750m in short-term investments to upgrade refineries and expand a pipeline bringing oil from Croatia.

It also said the longer-term conversion of its economy away from Russian oil could cost as much as €18 bn.

The Commission last week offered up to €2bn in support to countries that are landlocked and reliant on Russian supply – Hungary, the Czech Republic and Slovakia.

It has also unveiled a €210bn plan to end Europe’s reliance on Russian fossil fuels by 2027, but it has not yet revealed how EU states would share this money.

By CityAM

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on May 23 2022 said:
    The relevant question should be what it will take the EU to forgo a Russian oil embargo.

    The simple answer is for the EU to let rational thinking prevail over a temporary hatred of Russia. Russia is too big to be ignored and the importance of its supplies of energy and food products to the world is equally too quintessential to be ignored. Therefore, common sense dictates that it is far more beneficial for the EU to forgo an embargo on Russian oil than to go ahead with.

    Hungary is absolutely right to demand solutions before a ban on Russian oil. Hungary is merely trying to protect its economy from the disastrous economic fallout of a ban. If the EU is hell-bent on cutting its nose to spite its face as the proverbial saying goes, Hungary isn’t prepared to commit such a folly.

    Even before the ban, the EU has already downgraded its projected economic growth from 2.7% to 1.4% for this year.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • Andras Boros-Kazai on May 24 2022 said:
    Almost 20 EU members buy energy from Russia, including Germany.

    Why focus on Hungary?

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News