For Min-We Will Block Ukraine Funds If Lukoil Supplies Not Restarted

Hungarian Foreign Affairs Minister Péter Szijjártó has said that Budapest will block the EUR1.4bn of windfall profits accrued to frozen Russian assets set to be sent to the European Peace Facility (EPF) to aid Ukraine if Kyiv does not swiftly resume supplies of Russian oil to Hungary. Szijjártó says that the gov't urges the European Commission to pressure Ukraine to resume shipments from Lukoil. Kyiv hasallegedly haltedsupply of Lukoil crude oil to Hungary and Slovakia after placing the Russian firm on its sanctions list.

• Lukoil supplies account for one-third of Hungary's total annual oil imports. The two countries are the friendliest in the EU towards Russia, advocating for peace talks and opposing the supply of weapons and finance to Ukraine.
• A block on the European Peace Facility funds could further strain relations between Budapest and Brussels.
• Hungary currently holds the chair of the rotating presidency of the Council of the European Union. This gives the gov't a more prominent role in agenda setting as well as hosting EU ministerial gatherings.
• However, in a symbolic rebuke to the Orban gov'ts actions vis-a-vis Ukraine and visiting Russia, EU foreign policy chief Josep Borrell has called the next informal meeting of foreign ministers totake place in Brussels, rather than Budapest.
• A number of EU states have indicated that they will not send ministers, but junior officials to Hungarian-hosted meetings to show their distain. Some Orban critics have called for Hungary to be stripped of the Council presidency, but this appears unlikely at present.