Hungary Rejects Croatia's Offer for Alternative Oil Pipeline and Intensifies Conflict with the EU

Hungary has rejected a Croatian offer to use its pipeline system as an alternative route for oil imports, further escalating the existing conflict with the European Union. The move by Hungarian Foreign Minister Peter Szijjártó came after the European Commission pressured Hungary and Slovakia to dissociate from Russian oil sources more than two years after Moscow’s invasion of Ukraine. Hungary, Slovakia, and the Czech Republic had received exemptions from the EU-wide ban on the import of Russian crude oil transported via a pipeline running through Ukraine, as they have fewer alternatives. Szijjártó asked Brussels for assistance after Ukraine banned shipments through the Druzhba pipeline by Lukoil, a major supplier. The Commission, however, stated that there is no evidence that supply volumes have decreased or that there is a shortage, as other suppliers, including Hungary's MOL, could continue to use the pipeline. MOL purchases oil in Russia and is not subject to Ukraine's sanctions. On Wednesday, Croatian President Andrej Plenkovic wrote to the EU Commission to highlight the untapped potential of the Croatian oil pipeline, which connects Adriatic ports with the European network. He argued that the affected Central European landlocked countries could use this alternative supply route to reduce or even eliminate their dependence on Russian oil. The Croatian oil transit company Janaf was ready to conclude long-term contracts to ensure energy security and reduce dependence. Szijjártó reacted sharply to Plenkovic's letter on social media, accusing him of coordinating with the Commission to put pressure on Hungary. He complained that Croatia was not a reliable transit country, had increased transit fees to five times the market price, and made it impossible to secure long-term transport capacities. Trade Commissioner Valdis Dombrovskis urged Budapest and Bratislava to use the Adriatic pipeline and demanded proof that Ukraine’s sanctions against Lukoil actually affected supply volumes. Meanwhile, Hungary's Moscow-friendly Prime Minister Viktor Orbán is fighting on multiple fronts against Brussels while holding the rotating presidency of the EU until December 31. His diplomatic efforts between Moscow, Beijing, and the estate of former U.S. presidential candidate Donald Trump in Florida have angered many member states. Orbán is also blocking the EU's reimbursement for weapons deliveries from other capitals to Ukraine. Further, Home Affairs Commissioner Ylva Johansson stated that Budapest may be violating EU law by loosening visa regulations for Russian and Belarusian citizens. The new National Cards System would grant those who obtain a Hungarian residence permit free access to the 29-country Schengen Area. In a letter to the government, she expressed concern that this could amount to a "de facto circumvention of the restrictions imposed by the Union" for some Russians and Belarusians. She requested answers to her questions by August 19 to assess whether the system complies with EU law.