Janos Boka Issues an Ultimatum: As Long As There Is No Oil, There Is No Money

Shutting off the oil tap also shuts off the flow of EU funds. Hungary’s position is clear: as long as crude oil does not arrive through the Druzhba pipeline, Ukraine cannot count on the multibillion-euro loan. Speaking after the meeting of the General Affairs Council, EU Affairs MinisterJanos Boka said he had requested the immediate restart of the Druzhba oil pipeline from Ukraine's deputy prime minister present, but received no substantive response.

As long as crude oil does not arrive through the Druzhba pipeline, Ukraine cannot access the multibillion-euro loan (Source: AFP)

He said  Ukraine has changed its position several times regarding why the pipeline is not operational, and from a technical standpoint, these explanations were not compatible; there was no coherent explanation regarding the condition of the pipeline or why it is not functioning. He added that Ukraine has so far refused to allow external parties to assess and inspect the condition of the pipeline. “If there is a fact-finding delegation that the Ukrainians actually allow near the pipeline, that could provide some guidance,” he said. 

Hungary expects any such delegation to include experts from Hungary, Slovakia, and the companies concerned.

He also said that these companies have contracts with Naftogaz, and the oil transported through the pipeline is owned by Hungarian oil and gas company MOL, because the change of ownership takes place at the Belarusian-Ukrainian border. He added that this falls under the requirement for good-faith cooperation between the contracting parties and should not be interpreted as a political gesture.

In response to a question concerning whether Hungary had violated the principle of loyal cooperation when after the ministers agreed to this 90-billion-euro loan in December Hungary backed out and vetoed it, the minister said a political agreement was indeed reached regarding the framework, institutional arrangements, and procedural rules under which Ukraine would have access to a 90 billion euro credit line; however, "following that decision, Ukraine unilaterally and solely for political reasons took a measure that violates Hungary’s fundamental strategic interests". He said that 

Hungary could not be expected to act as if this step had not been taken by Ukraine.

He added that in such a situation, the Hungarian government is expected to use all available legal and political tools to protect Hungary’s strategic interests. Janos Boka said that as a last resort, Hungary would resort to the option available to it under EU law to autonomously formulate its position in a legislative dossier requiring unanimity. Commenting on Tuesday’s meeting, he said

Europe is currently facing a double energy squeeze, as it was cut off from Russian oil due to the closure of the Druzhba pipeline and from a significant portion of Middle Eastern sources due to the closure of the Strait of Hormuz, which has far-reaching implications for Europe’s energy security and could worsen further.

He added that 

Hungary expects the European Commission to put forward proposals that are suitable for mitigating high European energy prices even in the short term, 

expects the European Council to engage in a substantive debate on this matter.

Commenting on the issue of EU enlargement, regarding Moldova, he confirmed that, in Hungary’s view, Moldova is ready to open the first group of chapters based on the traditional, consensus-driven enlargement methodology. Hungary supports opening these chapters, he said. However, this has not happened despite general agreement among member states, because  a number of countries insist on linking Moldova’s accession process with that of Ukraine, which Hungary firmly opposes as a supporter of enlargement based on merit.

Janos Boka also noted that the General Affairs Council once again discussed the next seven-year budget framework (MFF).

The primary focus of the debate was the governance system — the set of rules and institutional mechanisms governing the operation, oversight and decision-making of the MFF. “Hungary’s position is that until fundamental strategic questions are decided, it is too early to debate the governance system,” he added.

Cover photo: As long as crude oil does not arrive through the Druzhba pipeline, Ukraine cannot access the multibillion-euro loan (Source: AFP)