Hungary expects oil flows through the Druzhba pipeline to resume soon

Hungary’s incoming Prime Minister Péter Magyar said on Friday that oil flows from Russia via the Druzhba pipeline could resume next week.

Magyar said the Hungarian oil and gas concern MOL MOLB.BU told him that “based on information from their partners they expect the Druzhba oil pipeline to restart next week.”

The pipeline, which delivers Russian oil to Hungary and Slovakia via Ukraine’s territory, has been a source of contention between Budapest and Kyiv after flows were stopped when it sustained damage in a Russian drone strike in late January.

Landlocked Hungary is heavily dependent on Russia for energy and after flows through the pipe were stopped, outgoing Prime Minister Viktor Orbán used his veto to block a €90 billion loan for Ukraine.

The financial scheme was agreed by the 27 leaders of the European Union in December, but Orbán used his veto in mid-February to block the legal procedure over the Druzhba dispute and made Ukraine’s President Volodymyr Zelenskyy the nemesis of his failed re-election campaign.

Crunch talks with the EU

Meanwhile, European Union officials are meeting in Budapest with members of Magyar’s team on Friday about several issues, including unlocking about €17 billion of aid for Hungary that was withheld during Orbán’s premiership.

Magyar will take power in May, but the EU is hoping to jump-start talks to fast-track cooperation with the new government, said European Commission spokesperson Paula Pinho in Brussels on Thursday.

“The clock is ticking for a number of topics,” said Pinho. The “preliminary talks” in Budapest before Magyar takes office are to “make sure that once the government is in place action can be taken, if appropriate, and that we do not waste any time.”

The EU froze the billions in funding to Hungary over concerns of corruption and democratic backsliding during Orbán’s 16-year rule. But both the EU and Hungary’s incoming leaders have prioritised releasing them as soon as possible to give a much-needed injection of cash into Hungary’s ailing economy.

European Commission President Ursula von der Leyen wrote on X on Tuesday that “there is swift work to be done to restore, realign and reform” Hungary’s policies in order to unblock the funds.

“Restore the rule of law. Realign with our shared European values. And reform, to unlock the opportunities offered by European investments,” said the EU executive, who herself was often vilified by Orbán during his campaign.

Magyar, whose party Tisza won a super-majority in parliament which will enable deep and quick reforms, has said his government will prioritise policies affecting judicial independence, academic and media freedom and anti-corruption in order to get access to the money.

In his first public press conference after winning in a landslide on 12 April, Magyar said that Hungary “is in a very difficult financial situation,” and that his new government’s task will be “to bring home the money that is hers.”

The funds are split between €10 billion of COVID recovery funds and €6.3 billion in the cohesion funds designed to lift up struggling economics within the EU.

Brussels and Budapest are rushing to first unlock the COVID funds because they are set to expire in August.

Hungary, a major net recipient of EU funds, had come under increasing criticism for veering away from democratic norms. The Commission had for more than a decade accused Orbán of dismantling democratic institutions, taking control of the media and infringing on minority rights.

Orbán rejected the accusations and denounced them as interference in Hungary’s sovereignty.

Additional sources • AP