Hungary’s essential oil conglomerate has mentioned it will pay an excellent invoice owed by Russia’s oil pipeline operator to the Ukrainian authorities, clearing the way in which for Russian oil deliveries to renew to 3 Central European nations.
Analysts described the monetary association as an sudden boomerang impact of sanctions imposed on Moscow.
The conglomerate, MOL Group, an administrator of the Hungarian arm of the Druzhba, or Friendship, pipeline, mentioned on Wednesday that it had “transferred the payment due for using the Ukrainian part of the pipeline.”
Ukraine pledged to renew deliveries of Russian crude to the three nations, Hungary, Slovakia and Czech Republic, “inside a matter of days,” MOL mentioned.
The authorities in these three nations mentioned on Tuesday that Russian oil deliveries from the pipeline had stopped final week over “technical” banking points linked to the sanctions that Europe had imposed on Russia to punish it for invading Ukraine in February.
“This appears to be simply one other instance of the ‘pleasant hearth’ from the sanctions that’s going to harm some European nations, on this case Hungary,” Vitaly Yermakov, a senior analysis fellow with Oxford Vitality, mentioned in an electronic mail. “Sanctioning financial exercise is a blunt weapon that may have unintended penalties.”