By Martin Vladimirov

(EurActiv) — Recently, Ukraine sanctioned Lukoil, preventing the Russian company from booking capacity on the Druzhba pipeline, which transits crude oil through Ukraine to Central Europe. The Hungarian government has tried to stoke panic about an imminent supply crisis. This fear-mongering serves only the Kremlin’s interests.

The pushback against the Ukrainian oil cut has its roots in vested political and economic interests. Hungarian oil company MOL, allied with Prime Minister Orbán, wants to preserve its profitable contract with Lukoil, which has helped it dominate Central Europe with cheap Russian crude. There are ample alternative supplies to keep the Central European market running, and the logistical and pricing concerns are exaggerated.

Different Bulgarian governments in the 2021-2023 period similarly claimed dependence on Russian crude (from Lukoil) to keep its exemption from the oil ban. CSD pressured the Bulgarian government to end the derogation, which if finally did 10 months earlier than the agreed deadline in the EU Regulation. This means $1 billion less in tax revenues for the Kremlin in 2024.

Despite all the........

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