Slovak PM blasts Ukraine’s Lukoil sanctions as oil flow stops

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Slovakia will not be a “hostage” to Ukraine-Russia relations, its Prime Minister Robert Fico told his Ukrainian counterpart in a call on Saturday (20 July), after Kyiv placed Russian group Lukoil on a sanctions list, leading to a halt in deliveries.

Slovakia and Hungary said this week they had stopped receiving oil from key supplier Lukoil after Ukraine imposed a ban last month on the transit of resources from the Russian energy company via its territory.

For Slovakia, that meant a loss in some supplies for its Slovnaft refinery, which is owned by Hungarian oil and gas group MOL.

Slovakia’s government office said on Saturday that Fico spoke by telephone with Ukrainian Prime Minister Denys Shmyhal and told him Slovakia did not intend “to be a hostage of Ukrainian-Russian relations”.

Slovnaft will receive 40% less oil for processing than needed, the government said, which will hit Slovak markets and could also lead to a stop of diesel supplies from Slovnaft destined for Ukraine.

“The inclusion of Lukoil on the sanctions list is just another example of senseless sanctions that do not hurt the Russian Federation but mainly some (European Union) member state, which is unacceptable,” Fico’s office said.

Fico has been a long-time critic of sanctions against Russia and, after taking office for a fourth time last year, halted direct state military aid to Ukraine, raising criticism for veering foreign policy too close to Moscow.

While the EU has imposed sanctions on Russian crude already, some countries like Slovakia have exemptions to have more time to transition to alternative sources.

Source: Euractiv.com

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.