Ukraine would not feel diesel cuts by Slovakia or Hungary, says fuel consultancy

KYIV (Reuters) – Ukraine will not feel the cessation of diesel supplies from Slovakia or Hungary, which have threatened to halt shipments by demanding the restoration of oil transit for a Russian company, the head of Ukraine’s leading fuel consultancy said on Thursday.

Slovak Prime Minister Robert Fico said on Monday that his country would halt diesel supplies to Ukraine unless Kyiv restores oil flows from Russia’s Lukoil through its territory. Slovakia and Hungary together supply about 10% of Ukraine’s diesel.

Diesel supplies are crucial for warring Ukraine because the fuel is used in combat vehicles.

In late June Ukraine imposed sanctions against Lukoil, one of the largest Russian oil companies, banning it from any activity on Ukrainian territory and stopping its oil from passing to Slovak and Hungarian refineries.

“When they say that Hungary and Slovakia may cut off diesel supplies to us, we have capacity for supplies from other directions (to increase) by 50% minimum,” Serhiy Kuyun, head of the A-95 consultancy, said on a televised briefing.

“We will not feel the loss of this 10%. We can compensate with an excess as a consequence of construction of a new supply system.”

A government representative was not available for immediate comment.

Before the Russian invasion in 2022 Ukraine imported almost all of its fuel from Russia and Belarus and was forced to completely overhaul the fuel import system in a short period of time, bringing it in through borders with EU countries.

Kuyun said that today fuel mainly goes through two corridors – from ports in Poland and Romania, where petrol and diesel is sent by producers from 20 countries, including the United States, India, Kuwait and Saudi Arabia.