Hungary and Slovakia Veto Russian Oil Sanctions, Blocking EU Package

Last-Minute Block in Brussels

The adoption of the European Union's 20th package of anti-Russian sanctions failed at the last minute on Thursday: Hungary and Slovakia both announced general reservations, preventing the EU ambassadors from reaching a unanimous decision. Both countries are making their approval conditional on ensuring the uninterrupted transit of Russian crude oil. The adoption of the sanctions package is essential before the EU Foreign Affairs Council meeting in Brussels on February 23, where Hungary will hold tough negotiations to protect its energy interests.

Background to the Crisis: Shutdown of the Druzhba Pipeline

The root of the tension dates back to January 27, when a Russian drone strike damaged the southern branch of the Druzhba (Friendship) oil pipeline passing through Ukrainian territory. Since then, no Russian crude oil has reached Hungary and Slovakia – even in January, deliveries were only 150,000 barrels per day, below the previous level of 200,000 barrels. Ukraine's Foreign Minister documented the Russian attack of January 27 with photos and called on Budapest to address its complaints to Moscow. In contrast, Hungarian Foreign Minister Péter Szijjártó claims that Kyiv is delaying the repair for political reasons.

Croatian Alternative: The Adria Pipeline

In response, Péter Szijjártó sent a letter to the Croatian Minister of Economy requesting that they allow the transit of Russian crude oil through the JANAF Adria pipeline, bypassing the Ukrainian section. Croatia welcomed the request, provided that the procedure complies with the relevant EU and US sanctions. MOL Nyrt. expects the first shipments via the Omišalj port in early March, with the crude oil reaching domestic refineries in 5–12 days. Meanwhile, the EU has convened an extraordinary meeting within the framework of the Oil Coordination Group, emphasizing that there is no short-term security of supply risk: both countries have strategic reserves sufficient for 90 days.

What Does the 20th Sanctions Package Contain?

One of the most important innovations of the European Commission's 20th sanctions package is that, instead of the existing price cap system, it introduces a complete ban on maritime services for ships transporting Russian crude oil – including repair, insurance and refueling. The package adds 42 more tankers to the blacklist and, for the first time, provides for sanctions against ports in third countries (Indonesia, Georgia). Greece, Malta and Cyprus – which have large tanker fleets – would like to make the maritime ban conditional on the prior approval of the G7 member states, which Brussels considers unlikely.

Budapest's Position and the Stakes in the Negotiations

Péter Szijjártó previously stated clearly:

"Banning the purchase of Russian crude oil would destroy Hungary's energy security."

In addition, Budapest and Bratislava have suspended their diesel exports to Ukraine until oil supplies are restored – a move that has further heightened tensions between Kyiv and the two member states. The EU's decision-making mechanism requires unanimity in sanctions matters, so a single veto is sufficient to thwart the measures. Diplomatic circles do not rule out that ambassadors will have to meet again over the weekend in order to meet the final adoption deadline of February 24 – the third anniversary of the Russian-Ukrainian war.

Conclusion

The debate surrounding the 20th sanctions package vividly illustrates the fault lines dividing the EU in the development of a common policy towards Russia. The combination of Hungary and Slovakia's energy dependence and the unanimity requirement gives Budapest and Bratislava an effective negotiating weapon – which both countries are prepared to deploy to protect their own energy security interests.