Hungary is initiating talks with regional allies to mitigate the effects of rising oil prices caused by the broadest package of US sanctions against the Russian oil and gas sector. This was stated by Hungarian Foreign Minister Peter Szijjarto, Reuters reports.
Last Friday, US President Joe Biden’s administration imposed sweeping sanctions aimed at cutting Russia’s oil and gas export revenues. These measures are intended to give Kyiv and the incoming Donald Trump administration additional leverage in peace talks over Ukraine.
Oil prices hit their highest level in three months, raising concerns in Central Europe.
US sanctions and risks for the region
The new package of US sanctions includes restrictions on Russian companies Gazprom Neft and Surgutneftegaz, which are engaged in oil production and transportation, as well as 183 ships transporting Russian oil.
“This package of sanctions poses serious challenges for Central Europe,” Siyarto said in a video message posted on Facebook.
According to the Hungarian diplomat, the reduction in crude oil supplies increases the demand for refined products such as petrol and diesel, which could lead to a significant price increase.
Hungary, which imports most of its crude oil through the Druzhba pipeline that runs through Belarus and Ukraine, risks facing significant economic consequences.
Sanctions with long-term consequences
The US has provided for a 90-day transition period to complete current energy transactions, but experts warn of serious disruptions in Russian exports to key markets such as India and China.
US officials say that these measures cover all stages of Russian oil production and could cause billions of dollars in losses to the Russian economy every month.
Hungary, for its part, hopes to find regional solutions to minimise the impact on its economy and energy stability.
