Hungary's Strategy Against U.S. Sanctions on Russian Oil

Hungary is strategizing to bypass U.S. sanctions on Russian oil firms without violating restrictions. Prime Minister Viktor Orban aims to sustain oil imports from Russia's Lukoil and Rosneft despite U.S. pressure on Moscow. MOL, Hungary's main oil company, faces operational challenges due to these sanctions.

Hungary is exploring methods to circumvent U.S. sanctions imposed on Russian oil companies, as confirmed by Prime Minister Viktor Orban. While details were sparse, Orban emphasized no intent to violate these restrictions.

U.S. President Donald Trump, who maintains close ties with the Hungarian leader, recently sanctioned Russian oil giants Lukoil and Rosneft during his second term. This move targets pressuring Moscow to achieve a ceasefire in Ukraine. Consequently, oil prices spiked, raising concerns for Hungary and Slovakia, principal EU buyers of Russian oil benefiting from exemptions.

Orban revealed dialogues with Hungary's oil company, MOL, regarding the sanctions, stating, "We are working on how to circumvent this sanction." With refineries in Hungary and Slovakia processing 14.2 million tonnes of Russian crude annually, MOL's operations heavily depend on the Druzhba pipeline. MOL's Slovak branch, Slovnaft, is currently assessing the sanctions' potential repercussions, expected to be enforced later in November.

(With inputs from agencies.)