The fresh US curbs could lead to a spike in fuel prices, Hungarian Foreign Minister Peter Szijjarto has warned
The new sanctions imposed on the Russian energy industry by the administration of outgoing US President Joe Biden are creating “serious challenges” for Central Europe, Hungarian Foreign Minister Peter Szijjarto has said.
The sweeping curbs, imposed by Washington last week as part of a strategy to reduce Moscow’s revenues amid the Ukraine conflict, targeted two major petroleum producers – Gazprom Neft and Surgutneftegaz – as well as their subsidiaries.
One such subsidiary is Naftna industrija Srbije (NIS), through which deliveries of Russian oil to Serbia and neighboring European nations have been carried out. Insurance companies as well as more than 30 oilfield service providers and over 180 vessels used to deliver Russian oil have also been blacklisted.
In a video message on Facebook on Sunday, Szijjarto stressed that the fresh sanctions by Washington “could lead to a serious increase in fuel prices” in Hungary and other countries in the region.
“If the demand increases, but the processing capacity decreases, then, unfortunately, this means that we are facing a very serious risk of price growth,” he warned.
Given the “serious challenges” posed by the new US sanctions, the Hungarian government will consult with partners in the region “in order to minimize the increase in fuel prices,” Szijjarto stressed.
He also said that after the inauguration of Donald Trump on January 20, the US “will have a president who does not see Hungary as an enemy, but as a friend.”
Biden previously acknowledged that fuel prices in the US “could increase by as much as three or four cents a gallon” due to the sanctions on Russian oil.
On Monday, the price for Brent crude on the international oil market surged above $81 per barrel for the first time in four months, after being on the rise for three days in a row.
After the latest curbs were announced, the Russian Foreign Ministry accused the Biden administration “of sacrificing the interests of the US’ European allies… and its own population” in failed attempts to inflict a strategic defeat on Russia. Moscow will respond to the “hostile actions” by Washington, the ministry stressed.
