EU agrees to ban over 2/3rd of Russian oil imports, excludes Druzhba pipeline- Why is Hungry opposing the move?

EU Russia Oil Ban: The European Union leaders agreed to ban more than 2/3rd of Russian oil with immediate effect on the first day of the special meeting of the European Council in Brussels. This was informed by European Council President Charles Michel on May 31, 2022. 

Michel tweeted saying, "Tonight EUCO agreed a sixth package of sanctions. It will allow a ban on oil imports from Russia. The sanctions will immediately impact 75% of Russian oil imports. And by the end of the year, 90% of the Russian oil imported in Europe will be banned."

The move aims to cut a huge source of financing for Russia's war machine and put maximum pressure on the country to end the war in Ukraine.

This sanctions package includes other hard-hitting measures:

de-Swifting the largest Russian bank Sberbank,

banning 3 more Russian state-owned broadcasters,

and sanctioning individuals responsible for war crimes in #Ukraine#EUCO

— Charles Michel (@eucopresident) May 30, 2022

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EU to support Ukraine's reconstruction

The European Council President stated that the council will continue to help Ukraine with its immediate liquidity needs, together with the G7 nations. He announced that the European Council is ready to grant Ukraine EUR 9 billion, pledging strong and concrete support to Ukraine's reconstruction.

The EU Council President thanked Ukrainian President Volodymyr Zelenskyy for his sincere address to the Members of the European Council and said, "we will boost your liquidity and help you reconstruct Ukraine. We will continue to bolster your ability to defend your people and your country."
Other Sanctions

I thanked President @ZelenskyyUa for his sincere address to the Members of the European Council.

We will boost your liquidity and help you reconstruct #Ukraine

We will continue to bolster your ability to defend your people and your country. pic.twitter.com/nA0MbEKy3U

— Charles Michel (@eucopresident) May 30, 2022

The European Council sanctions package also includes other hard-hitting measures such as -

-Exclusion of largest Russian bank Sberbank fron SWIFT

-Sanctions of individuals responsible for war crimes in Ukraine

-Banning of 3 more Russian state-owned broadcasters.

Tonight #EUCO agreed a sixth package of sanctions.

It will allow a ban on oil imports from #Russia.

The sanctions will immediately impact 75% of Russian oil imports. And by the end of the year, 90% of the Russian oil imported in Europe will be banned. pic.twitter.com/uVoVI519v8

— Charles Michel (@eucopresident) May 30, 2022

Hungarian PM warns no compromise reached yet

While the European Council leaders attempted to persuade Hungarian Prime Minister Viktor Orban to back the Russian oil embargo after a month of negotiations, Orban said that no comprise had been reached yet. The Hungarian Prime Minister has demanded an exemption from the ban and guarantees for his country's energy supply. 

As per the current proposal, Russian oil arriving in the EU and in Hungary by pipeline will be exempted from sanctions. However, the Hungarian PM wants a guarantee that in case something happens to the pipeline carrying the Russian oil, then they would have the right to receive it by the sea and have it arrive from elsewhere. 

However, Orban did not threaten to veto the leaders' planned summit statement, arguing that it was the European Commission's job to fine-tune the sanctions package.

#UPDATE EU leaders were hoping on Monday to persuade Prime Minister Viktor #Orban to back a watered-down oil embargo against Russia after a month of haggling over a blocked sanctions package https://t.co/UoeCKcr5C1 pic.twitter.com/WqLCTVFb7d

— AFP News Agency (@AFP) May 30, 2022

Why is Hungary opposing Russian oil ban?

Landlocked Hungary imports 65 percent of its oil from Russia through the Druzhba pipeline. The country is demanding at least four years and almost 800 million euros in EU funding to adapt its refineries to the embargo on Russian oil. Two other countries including Slovakia and the Czech Republic have also asked for an exception from the Russian oil import ban. 

The latest embargo proposal excludes the Druzhba pipeline and only imposes sanctions on the oil shipped to the European Union by tanker vessel, which counts for two-thirds of Russian oil imports.

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