Economy 9 March 2022, 4:01pm

Hungary will not slap embargo on Russian oil, gas - Orbán

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The focus of our efforts is on building peace, but we must also devote at least as much energy to the economic consequences of the sanctions imposed because of the war, Hungary's Prime Minister Viktor Orbán said in a video posted on Facebook on Wednesday. He also said that there was a diplomatic hive of activity, referring to the ongoing talks in the EU on sanctions against Russia. He stressed that Hungary would not impose sanctions on gas and oil from Russia.

The economic impact of the sanctions imposed because of the war is severe, but if we also impose sanctions on gas and oil imported from Russia, the impact would be even more severe, Orbán said.

Moreover, Hungary would be disproportionately burdened by these sanctions,

, he added. He reminded that 85% of all gas entering Hungary comes from Russia, and fuel is produced from oil, 64% of which comes from Russia.

I made it clear that we cannot follow the example of the United States, which yesterday imposed these sanctions,

he stressed after talks with the President of the European Council. For Hungary this would be an unbearable burden, we cannot join these sanctions, we need the gas and oil that comes from Russia, he added.

Orbán was referring to US President Joe Biden on Tuesday banning imports of Russian oil, gas and coal in response to what he called President Vladimir Putin’s “vicious war of choice” in Ukraine, but warned Americans that the decision to inflict economic pain on Russia would inevitably mean higher gas prices at home.

Today I’m announcing the United States is targeting the main artery of Russia’s economy. We’re banning all imports of Russian oil and gas and energy.

"That means Russian oil will no longer be acceptable at U.S. ports, and the American people will deal another powerful blow to Putin’s war machine," added Biden. The President's Executive Order can be found here. The ban takes effect immediately.

The United Kingdom has followed suit, but not with an immediate ban. Britain will phase out imports of Russian oil and oil products by the end of 2022 and consider banning its natural gas, joining other countries.

"In another economic blow to the (Vladimir) Putin regime following their illegal invasion of Ukraine, the UK will move away from dependence on Russian oil throughout this year, building on our severe package of international economic sanctions," Prime Minister Boris Johnson said in a statement.

"Working with industry, we are confident that this can be achieved over the course of the year, providing enough time for companies to adjust and ensuring consumers are protected."

On Tuesday, the European Commission proposed an outline of a plan to make Europe independent from Russian fossil fuels well before 2030, starting with gas, in light of Russia's invasion of Ukraine.

The two-day informal EU summit in Versailles, France, is set to kick off at half past five on Thursday evening, and the invitation letter already shows that European leaders are preparing to take major decisions in response to the Russian invasion.