FX.co ★ Hungary's demands stall Russian oil embargo

The European Union continues to cut imports of Russian oil. Crude supplies cannot be stopped overnight and the European countries are refusing to buy Russian energy slowly but surely. The European Union adopted an embargo on Russian seaborne imports of crude oil. The new measure was implemented after European governments agreed on a compromise deal with the European Council and the European Commission. Notably, Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto proposed the gradual phasing out of Russian energy in May. According to him, this measure will help landlocked Hungary prepare for a complete embargo. For several weeks, Hungary has refused to support the new sanctions and end Russian crude imports without a detailed discussion on EU funding. If the country rejects Russian oil, it will need new infrastructure and equipment to receive and process oil from other suppliers. Since the decision on EU sanctions requires unanimity, the bloc cannot yet impose an embargo. Earlier, Hungarian Prime Minister Viktor Orban turned down the EU’s extended offer to completely phase out Russian oil imports by the end of 2024.