Russian Oil Exports to Hungary and Slovakia Continue Despite Lukoil Sanctions

Russian crude exports to Hungary and Slovakia remained steady in July, as the impact of sanctions on Lukoil was offset by increased supplies from another Russian company, Tatneft, Bloomberg reported on August 27, citing an unnamed source.

Following Ukraine's tightened restrictions on the Russian oil giant Lukoil, which effectively halted the company’s supplies to the two EU countries via the Druzhba pipeline since late June, a diplomatic dispute ensued. Kyiv’s actions were met with concern from Bratislava and Budapest, which claimed that the move jeopardized their energy security and threatened potential repercussions.

Hungary and Slovakia are among the few nations exempted from EU sanctions on Russian pipeline oil.

Despite these concerns, Russian crude deliveries in July were reported as 436,000 metric tons to Hungary and 356,000 metric tons to Slovakia, according to Bloomberg's industry source. These figures represent an increase from June and are roughly consistent with last year's levels. Although Lukoil’s supplies were disrupted in July, Tatneft increased its exports, compensating for the missing barrels, Bloomberg reported.

This aligns with a statement from Oleksii Chernyshov, CEO of the Ukrainian energy company Naftogaz, who noted in July that the volume of oil transiting through Ukraine had not changed despite Lukoil sanctions.

Likewise, Hungary’s leading refiner Mol dismissed concerns, stating that the country would not experience any shortages due to Ukraine’s sanctions. Following appeals from Hungary and Slovakia, the European Commission reviewed the situation but concluded there was "no reason for concern."