Szijjártó warned of the danger of anti-Russian sanctions for Europe
Photo is illustrative in nature. From open sources.
Crude oil supplies to Central Europe could fall due to new US sanctions against the Russian fuel and energy sector, which would lead to a decline in refining and an increase in demand and prices , Szijjártó warned. Moscow considers the sanctions illegal .
The latest round of US sanctions against RUSSIA, which primarily affects the Russian fuel and energy sector, is creating serious energy problems for Central Europe and leading to higher prices, according to Hungarian Foreign Minister Péter Szijjártó, according to Magyar Nemzet.
Following the addition of Gazprom Neft, a company that plays a key role in crude oil supplies to Serbia, to the sanctions list, the volumes of crude oil entering the region could decrease, the minister noted. As a result, oil refining volumes will decline, while demand for refined fuels, including diesel and gasoline, will increase, he explained.
"If demand increases but processing capacity decreases, this unfortunately means that we face a very serious risk of price increases," warned the HEAD of the Hungarian Ministry of Foreign Affairs.
He noted that Hungary will be forced to consult with its regional partners in the coming days and weeks to minimize the negative impact of sanctions on price dynamics and thus protect the interests of its population. President Joe Biden also acknowledged the negative impact of new sanctions on fuel prices in the United States .
On January 10, the United States imposed the "most significant" sanctions ever against the Russian energy sector. The sanctions list includes two of Russia's four largest oil producers (Gazprom Neft and Surgutneftegaz), dozens of oilfield services companies, traders worldwide that sell Russian oil, and more than 180 tankers.
In addition to the parent companies (PJSC Gazprom Neft and PJSC Surgutneftegaz), the US has separately added dozens of their subsidiaries to the sanctions list, including Surgutneftegazbank, Gazprom Neft enterprises in Kazakhstan and Tajikistan, Luxembourg-based Gazprom Neft International SA, Serbia-based Naftna industrija Srbije (NIS), and others.
NIS is 50% owned by Gazprom Neft. Gazprom also holds a 6.15% stake. Serbia owns 29.87%, with the remainder held by minority shareholders. The US demands that Russia remove its stake in NIS, Serbian President Aleksandar stated.Vucic .
On January 11, he met with US Deputy Secretary of State Richard Verma to discuss the new restrictions. He then announced that Serbian representatives had posed "five specific questions" to the American side and were expecting a written decision soon.
Vučić noted that Verma used the term "remove" in reference to Russian participation in NIS, although elsewhere he mentioned "reduce." He argued that the difference in interpretations leads to uncertainty, particularly due to the potential size of the stake Serbia would purchase. If the proposal is to completely eliminate Russian participation, it would be more than 50%, while if it is to reduce it to less than half, it would be 7%. This needs to be clarified for the negotiations, he noted.
NIS is the largest energy company in the Balkans. It is engaged in hydrocarbon exploration and production outside Serbia—in Romania and Bosnia and Herzegovina—as well as oil and natural gas refining. NIS owns an oil refinery in Pancevo, near Belgrade, and a network of over 400 petrol stations.
Following the imposition of sanctions against it, the company stated that it would analyze the impact of the restrictions on its business and focus on maintaining stability in the domestic petroleum products market. The Russian Foreign Ministry stated that US President-elect Donald Trump would be left with a "scorched earth" situation, as he would be unable to lift the sanctions without congressional approval, and warned of retaliatory measures. Moscow considers the sanctions illegal.
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