Hungary ‘holding EU hostage’ over sanctions on Russian oil

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Hungary has been accused of “holding the EU hostage” over its refusal to agree an oil embargo against Russia, as the bloc struggles to reach consensus on its latest sanctions aimed at eroding the Kremlin’s ability to wage war.

Lithuania’s foreign minister, Gabrielius Landsbergis, said: “Unfortunately the whole union is being held hostage by one member state.” He was referring to Hungary, which continues to block the oil embargo, despite being offered an extension on phasing out Russian crude until the end of 2024.

“Everybody expected this will be enough,” Landsbergis told reporters, reflecting the widespread view that Budapest would fall into line if it got more time to convert its energy system to accommodate non-Russian oil.

The EU’s top diplomat, Josep Borrell, said there were no guarantees the issue would be resolved at a meeting of EU foreign ministers on Monday. “We will do our best to unblock the situation,” he said. “I cannot ensure this is going to happen because positions are quite strong.”

Johanna Sumuvuori, Finland’s junior foreign minister, who said she would update her counterparts on Helsinki’s bid to join Nato, said on the oil ban: “It’s very important to do our utmost, so that we can make a strong statement as an EU.”

The EU has been unable to agree to its sixth package of sanctions against Russia – which includes asset freezes and travel bans on prominent Vladimir Putin supporters – 12 days after the European Commission president, Ursula von der Leyen, outlined plans for a Russian oil embargo to come into force at the end of 2022.

Since the proposals, EU officials have made a series of concessions. A plan to ban EU ships from transporting Russian oil was dropped, after opposition from Greece and Cyprus, which worried their industries would lose out to competitors.

Meanwhile, landlocked countries that are heavily dependent on Russian oil were offered a delay in joining the EU embargo. Hungary and Slovakia were given until the end of 2024, while the Czech Republic has been offered a June 2024 deadline. While Slovakia and the Czech Republic appear ready to sign off the sanctions, Budapest continues to hold out on the oil embargo, which the Hungarian prime minister, Viktor Orb?n, has likened to an atomic bomb hitting his country’s economy.

Hungary says it needs five years and hundreds of billions of forints to convert its Sz?zhalombatta refinery near Budapest, which can take only Russian oil. Hungarian officials also say Croatia must boost its capacity to ensure access to alternative supplies.

Von der Leyen announced last week that she planned a video conference with Hungary and other countries in the region to work out how to rework Hungary’s oil supply. No details have been announced since Von der Leyen made that statement.

EU foreign ministers, who are meeting in Brussels for talks with Ukraine’s foreign minister, Dmytro Kuleba, were never expected to produce a breakthrough on the sanctions hold-up.

The 27 ministers are also meeting their Canadian counterpart, M?lanie Joly, who called for Finland and Sweden’s speedy accession to Nato.