Kremlin lauds Hungary PM for blocking EU aid to Ukraine

Kremlin spokesman Dmitry Peskov moderates Russian President Vladimir Putin's year-end press conference at Gostiny Dvor exhibition hall in central Moscow on December 14, 2023. (AFP)
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Updated 16 December 2023
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Kremlin lauds Hungary PM for blocking EU aid to Ukraine

  • Hungarian Prime Minister Viktor Orban vetoed the EU earmarking 50 billion euros ($54 billion) over four years for Ukraine, as the country battles Russia’s invading army

BRUSSELS: Russia congratulated Hungary on Friday for blocking EU financial aid to Ukraine at a Brussels summit that nonetheless saw EU leaders overcome Budapest’s opposition to agree Kyiv starting membership talks.
“Hungary, in contrast to many European countries, firmly defends its interests, which impresses us,” Kremlin spokesman Dmitry Peskov said in Moscow.
Hungarian Prime Minister Viktor Orban vetoed the EU earmarking 50 billion euros ($54 billion) over four years for Ukraine, as the country battles Russia’s invading army.
However, on Thursday, when the EU leaders discussed opening accession talks with Ukraine and Moldova, Orban agreed to leave the room so that his colleagues could approve the plan by consensus and not face a Hungarian veto.
Moscow slammed the move.
“This is absolutely a politicized decision — the EU’s desire to show support to these countries in this way. But certainly such new members can actually destabilize the EU,” Peskov said.
Peskov said Brussels was intent on pitting eastern European countries against Moscow.
“Everything is being done to annoy Russia and antagonize these countries toward Russia,” he said.
Hungary under Orban is Russia’s best friend in the EU, and Moscow sees the country as one of its only allies inside the bloc.
Orban, in an interview with Hungarian state radio, linked the planned EU money for Ukraine to tens of billions of euros that Brussels has frozen for Hungary because of democratic backsliding and corruption concerns.
“This is a great opportunity for Hungary to make it clear that it should get what it deserves,” Orban said. “We want to be treated fairly, and now there is a good chance that we can assert this.”
Faced with Orban’s intransigence, the other EU leaders agreed to revisit the matter in another summit early next year.
Irish premier Leo Varadkar said the blocked discussion was “disappointing” but “there are workarounds” if Hungary continued to dig its heels in. The other 26 countries could stump up the Ukraine aid money anyway, on a bilateral basis, he said, though the preference was to make it an EU package.
“We’ll have to work on it over over the Christmas break and come back here sometime in January,” Varadkar said as he arrived for the second day of the summit.
Lithuanian President Gitanas Nauseda said: “I see a possibility for a deal. Yes, it will take time, maybe several weeks will be needed.”
Kyiv is urgently trying to change the narrative that backing from its Western allies is waning as doubts swirl over support from the US.
Ukraine’s President Volodymyr Zelensky, who did not attend the knife-edge summit, called the membership talks decision “a victory that motivates, inspires, and strengthens.”
The White House — which faces opposition from US Republicans to support for Ukraine — hailed the “historic decision.”
The agreement to open membership negotiations with Kyiv does not mean that Ukraine will be joining the EU any time soon.
Before the talks can be launched, EU states must agree on a negotiating framework — giving Orban ample opportunity to stall the process again.
In what some saw as a last-minute concession to coax Hungary, the European Commission agreed on Wednesday to unblock 10 billion euros of cash for Budapest that it has frozen. Another 21 billion euros remains out of Orban’s grasp.
Orban’s absence for the accession talks issue raised alarm bells for some EU leaders, worried such tactics could be replicated in future, thorny discussions, weakening bloc unity.

 


US allows oil majors to broadly operate in Venezuela, new energy investments

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US allows oil majors to broadly operate in Venezuela, new energy investments

  • Treasury Department issues general license allowing Chevron, BP, Eni, Shell and Repsol to operate oil and gas operations in Venezuela
  • Move is the most significant relaxation of sanctions on Venezuela since US forces captured and removed President Nicolas Maduro
WASHINGTON: The US ​eased sanctions on Venezuela’s energy sector on Friday, issuing two general licenses that allow global energy companies to operate oil and gas projects in the OPEC member and for other companies to negotiate contracts to bring in fresh investments. The move was the most significant relaxation of sanctions on Venezuela since US forces captured and removed President Nicolas Maduro last month.
The Treasury Department’s Office of Foreign Assets Control issued a general license allowing Chevron, BP, Eni, Shell and Repsol to operate oil and gas operations in Venezuela. Those companies still have offices in the country and stakes in projects, and are among the main partners of state-run ‌company PDVSA.
The authorization ‌for the oil majors’ operations requires payments for royalties and Venezuelan ​taxes ‌to ⁠go through ​the US-controlled ⁠Foreign Government Deposit Fund.
The other license allows companies around the world to enter contracts with PDVSA for new investments in Venezuelan oil and gas. The contracts are contingent on separate permits from OFAC.
The authorization does not allow transactions with companies in Russia, Iran, or China or entities owned or controlled by joint ventures with people in those countries.
The licenses “invite American and other aligned companies to play a constructive role in supporting economic recovery and responsible investment, ” the US State Department said in a release. Additional authorizations may be issued “as necessary,” it said.
A spokesperson for Chevron, ⁠the only US oil firm currently operating in Venezuela, said the company welcomed ‌the new licenses.
“The new General Licenses, coupled with recent changes ‌in Venezuela’s Hydrocarbons Law, are important steps toward enabling the further development ​of Venezuela’s resources for its people and for advancing ‌regional energy security,” the spokesperson said in a statement.
Eni said it is assessing the opportunities in ‌Venezuela that the authorization opens up.

Oil law reform

The US licenses follow a sweeping reform of Venezuela’s main oil law approved last month, which grants autonomy for foreign oil and gas producers to operate, export and cash sale proceeds under existing joint ventures with PDVSA or through a new production-sharing contract model.
The US has had sanctions on Venezuela since ‌2019 when President Donald Trump imposed them during his first administration. Trump is now seeking $100 billion in investments by energy companies in Venezuela’s oil and gas sector. ⁠US Energy Secretary Chris Wright ⁠said on Thursday, during his second day of a trip to Venezuela, that oil sales from the country since Maduro’s capture have hit $1 billion and would hit another $5 billion in months.
Wright said the US will control the proceeds from the sales until Venezuela stands up a “representative government.” Since last month, the Treasury issued several other general licenses to facilitate oil exports, storage, imports and sales from Venezuela. It also authorized the provision of US goods, technology, software or services for the exploration, development or production of oil and gas in Venezuela.
The Venezuelan government expropriated assets of Exxon Mobil and ConocoPhillips in 2007 under then-President Hugo Chavez. The Trump administration is trying to get those companies to invest in Venezuela as well. At a meeting at the White House with Trump last month, Exxon Mobil CEO Darren Woods said Venezuela was “uninvestable” at ​the moment.
Wright said on Thursday that Exxon, ​which no longer has an office in Venezuela, is in talks with the government there and gathering data about the oil sector. Exxon did not immediately comment.