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HUNGARY: Fitch Say Lukoil Sanctions a Significant Risk for Hungarian Refineries

HUNGARY

Refineries in Slovakia and Hungary face significant credit risk following Ukraine’s decision to sanction Russian oil producer Lukoil, according to Fitch Ratings.

  • "Crude oil from Lukoil to be shipped across Ukraine through the Druzhba pipeline has been put on hold since June 2024. These volumes primarily serve the Hungarian and Slovakian markets and, while immaterial to the overall European supply balance, could significantly impact energy supply in Hungary and Slovakia over the medium-term." Fitch write in a note.
  • Last week, the Hungarian Foreign Minister said Hungary and Russia were working to resume oil deliveries.

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