Ukrainian Sanctions Halt Lukoil’s Oil Shipments to Hungary

Russian oil giant Lukoil has ceased transporting oil to Hungary as of late June 2024, following the imposition of expanded sanctions by Ukraine’s National Security and Defence Council (NSDC).

This development was reported by Bloomberg.

The intensified Ukrainian sanctions against Lukoil, enacted in June 2024, have effectively blocked the transit of its oil to Hungary.

Lukoil had been under Ukrainian sanctions since 2018; however, these earlier measures were relatively limited, focusing primarily on restricting capital flows, limiting trade operations, and banning participation in the privatisation or leasing of state property.

In June 2024, the NSDC significantly broadened these sanctions, notably including a ban on transit.

“The current legal situation in Ukraine means Lukoil cannot supply oil to Hungary. We are working on a legal solution,” stated Hungarian Foreign Minister Péter Szijjártó following a meeting with Russian Foreign Minister Sergei Lavrov.

Hungarian oil company Mol relies heavily on Russian supplies, which account for two-thirds of its crude oil. Nonetheless, it is projected that Mol could fully replace Russian oil imports by 2025.

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German Minister Robert Habeck wants EU to go ahead with Russian oil ban without Hungary

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