Hungary close to finalizing talks on 'balanced' oil supply amid Ukraine's sanctions against Lukoil.

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Budapest is close to finalizing talks on "balanced" oil supply after Ukraine blocked the transit of Russian oil through the Lukoil pipeline, Hungarian Foreign Minister Peter Szijjarto said on Aug.

21 after a government meeting. Szijjarto did not specify which country or countries would export oil to Hungary to compensate for the lack of Lukoil supplies. In June, Kyiv imposed sanctions blocking Lukoil, one of the largest oil companies in Russia, from transiting crude oil through the Druzhba pipeline running through Ukrainian territory.

The move aims to cut off one of the Kremlin's sources of income used to finance its war against Ukraine. Kyiv's ban does not apply to other Russian oil exporters who still use the pipeline. Hungary accused Ukraine of "blackmail" and endangering its energy security after the sanctions were imposed.

"Negotiations are now in full swing to ensure balanced oil supplies for Hungary in the long term, despite Ukraine's measures and the fact that the European Commission is not helping us," Szijjarto said. Szijjarto also said that there are no problems with gas supplies to Hungary, including from Russia, despite the fighting in Kursk Oblast, where the Sudzha gas distribution station is located. "Hungary's energy supply is secure, despite all the challenges you are well aware of," the minister said.

Hungarian and Slovak officials complained that by blocking Lukoil oil transit, Kyiv violated its association agreement with the European Union and asked the European Commission to intervene. EU ambassadors are not sympathetic to Budapest's and Bratislava's complaints, Politico reported on July 29, as the two countries did not reduce their dependency on Russian oil despite the ongoing war. Ukraine's Prime Minister Denys Shmyhal denied on Aug.

1 that the ban on the transit of Russian Lukoil's oil through Ukrainian territory violates the EU-Ukraine Association Agreement, echoing the European Commission's statement.

Commenting on Hungary's and Slovakia's reaction to the ban, Shmyhal called it "extremely politicized and manipulative."

Hungary to block EU's Ukraine defense funds until Kyiv lifts ban on Lukoil transit, Budapest says

The Slovak leadership also threatened unspecified repercussions against Ukraine, reminding Slovakia's key role as an electricity supplier amid Ukraine's energy deficit.