Hungary will continue refining Russian oil products after the embargo

Hungary will continue to process domestically Russian oil products after the start of the embargo on their supplies on February 5, reported “RIA Novosti” with reference to the statement of the Ministry of Energy of the country.

“As you know, the government for Hungary has achieved a temporary exemption from the sanctions for the supply of oil coming through the pipeline, so in the future it will still be possible to process and distribute products of Russian origin within the country, however, it is possible to trade with other countries only products of non-Russian origin,” he quotes publication of the ministry’s statement.

The Ministry of Energy noted that from the refinery of the Hungarian company MOL in Bratislava it will be possible to export only raw materials of non-Russian origin, but, as previously reported at the enterprise, its share is 30%.

“However, in the long term, the consequences of the new sanctions restrictions, which are now coming into force, may also affect Hungary. For a stable supply of fuel to Hungary, imports are necessary, therefore, an increase in fuel prices in Europe due to sanctions may also affect Hungary, ”the Hungarian Ministry of Energy believes.

In 2022, after the strengthening of anti-Russian sanctions, the main buyers of oil and oil products from Russia – the European Union, the United States and the United Kingdom – imposed an embargo on their supplies, and then decided to limit fuel prices. From December 5, 2022, the price ceiling for offshore oil supplies from the Russian Federation, introduced by unfriendly countries, is in effect, and on February 5, 2023, the price ceiling for oil products will also come into force.

In addition to this, the parties Deal introduce two price limits – for petroleum products that are sold at a premium to Brent (diesel), and those that are sold at a discount (fuel oil). Bloomberg sources reported on January 26, 2023 that the EU is considering limits of $100/bbl. for diesel (about $730/t) and $45/bbl. for fuel oil (about $330/t), but the figures may still change.

February 3, press secretary of the President of Russia Dmitry Peskov pointed outthat the start of the embargo would lead to a “further unbalance” of the situation in the energy markets. He also added that Russia is taking steps to protect itself from emerging risks.