Hungarian Prime Minister Viktor Orban has ordered the halt of natural gas transit to Ukraine through the country's territory from July, according to a decree cited by DPA, BTA reports.
The decision is related to Budapest's desire to put pressure on Kiev to restore oil supplies via the Druzhba pipeline, which was damaged in a Russian strike.
“As long as Ukraine does not supply us with oil, we will not supply it with gas,” Orban said.
According to experts, such a step raises serious legal questions, since the trade in natural gas is carried out by private companies. In Hungary, the gas transmission system operator is FGSZ, part of the MOL group.
The companies purchase transit capacity through auctions, and the new decree prohibits the offering of such capacity to Ukrainian entry points after July.
Contracts for the second quarter have already been concluded, meaning that any intervention could lead to significant financial claims against the state.
According to the Ukrainian energy company, about 44% of natural gas imports into Ukraine last year passed through Hungary, with Poland and Slovakia also key transit countries.
The decision comes amid heightened political tensions, with Orban facing upcoming parliamentary elections and criticism that he is using energy policy for political purposes.