Hungary raised objections to a European Union proposal to sanction Litasco Middle East DMCC, a Dubai-based trading unit of Russian oil giant Lukoil PJSC, according to people familiar with the matter.
According to Bloomberg, EU envoys started debating this week the bloc’s plans for a new package of sanctions on Russia over its full-scale invasion of Ukraine. Budapest cited energy security concerns for its reservations, said the people, who spoke on condition of anonymity to discuss private deliberations.
Negotiations will continue next week.
Lukoil was the second-largest seller of Russian supplies to foreign markets last year, and this would be the first time the company’s trading arm is targeted by the coalition of countries sanctioning Russia. Litasco had been rebuilding its presence in global oil markets over recent months.
Hungary is also one of a handful of European nations that is still allowed to import Russian oil domestically.
