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Tensions Over Ukraine-Hungary Oil Pipeline Delay EU Loan

A dispute over oil supplies between Ukraine and Hungary is jeopardizing a vital €90 billion EU loan intended for Ukraine's recovery amid ongoing conflicts.

Source: bbc.co.uk1 min read
Tensions Over Ukraine-Hungary Oil Pipeline Delay EU Loan
Image via bbc.co.uk

In brief

Hungary and Slovakia's conflict with Ukraine regarding the Druzhba pipeline is hindering a crucial EU loan meant to aid Ukraine. The pipeline's operation has been halted since a Russian attack damaged the Brody hub. While Ukraine claims it needs time to repair, Hungary accuses it of stalling for political reasons.

A bitter dispute pitting Hungary and Slovakia against Ukraine is holding up a crucial €90bn (£77.95bn) EU loan to Ukraine.

No oil has flowed through the Druzhba (Friendship) pipeline, from Russia to Hungary and Slovakia across Ukraine, since the major oil hub at Brody, in western Ukraine, was damaged in a Russian attack on 27 January.

While Ukraine argues that it will need six more weeks to repair the damage and restore the oil flow, Budapest accuses Kyiv of stalling as revenge for Hungary's pro-Russian and anti-Ukrainian position.

The dispute underlines the ability of one or two countries to block EU decision-making and highlights Hungary and Slovakia's fuel problems due to their continued reliance on Russian oil.

The Brody pumping station in Ukraine's western Lviv region is crucially important for the transit of Russian oil to Hungary and Slovakia.

Satellite images suggest that the strike on 27 January damaged key infrastructure, notably a large oil storage tank meant for maintaining pipeline pressure. Ukrainian experts indicate that the damage may affect not just the tank but other systems as well, with ongoing repair efforts hindered by resources affected by the war.

Hungarian officials have accused Ukraine of political maneuvering regarding the pipeline restoration, implying that operations could resume if Ukraine prioritized it. At the same time, Hungary has started receiving alternative oil supplies but lacks the infrastructure to refine them effectively.

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