Good morning. Viktor Orbán isn’t holding back in his opposition to more EU support for Ukraine. He used a second letter to Council President Charles Michel in two weeks to demand discussions on both Ukraine’s EU membership and a top-up to the bloc’s budget be removed from the agenda of next week’s leaders’ summit as, according to the Hungarian leader, they will “inevitably lead to failure.” Today, our trade and energy correspondents reveal that a Czech and Slovak demand for an extended exemption on using Russian oil is complicating sanctions discussions, while our Rome and Berlin bureau chiefs report on Italy’s seizure of a migrant-support ship funded by Germany. Addicted The difficulty in kicking dependency on Russian oil is complicating the latest EU sanctions package against Moscow, write Andy Bounds and Alice Hancock. Context: Slovakia, the Czech Republic and Hungary can continue using oil from Russia’s Druzhba pipeline despite an EU ban, until alternative supplies are available. But an exemption allowing Slovakia to sell products made from refined Russian oil ends today. Prague and Bratislava want to extend the rule as part of legislation implementing the EU’s proposed 12th sanctions package against Russia, arguing that otherwise shortages would push up prices in several countries. “If we do not export these products to the Czech Republic it could have a wider impact on the central Europe region. It could increase prices in several countries,” a Slovak official said. But Poland and the Baltic states are adamant the exemption should not be extended. “We have consistently called for stopping all co-operation between EU member states and Russia, especially in the area of oil trade,” said one EU diplomat. “The main reason behind it is to hit Russia’s budget used for military operations in Ukraine.” Slovnaft, a refinery in Bratislava owned by Hungary’s MOL group, said it would have to cease exports of banned products tomorrow if the exemption was not granted. Commission officials involved in negotiations over the sanctions package, which also includes a ban on trading Russian diamonds and measures tightening a G7-led price cap on Russian oil, acknowledge the opposition to the extension but are confident it won’t derail the entire package. Slovnaft has not yet been able to pivot from Russian heavy crude to the lighter version imported from other countries, the Slovak official said. It would cost around €200mn to do so and has taken longer than expected. The Czech government has said it is pushing to complete improvements to a pipeline connecting the Mediterranean port of Trieste with central Europe, which would allow it to bypass Druzhba. But the work won’t be completed until next year.

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