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Hungary would be prepared to veto European Union sanctions against Russia’s oil industry if the measures restricted Budapest’s ability to import energy, according to a senior official in Prime Minister Viktor Orban’s government.

The European Commission is set to propose a ban on Russian oil by the end of the year because of its war in Ukraine, with restrictions on imports phased in until then, Bloomberg reported on Saturday, citing people familiar with the matter.

Hungary, which relies heavily on Russian energy, has been among the most vocal in opposing the extension of sanctions. Orban’s government has warned of serious damage to the Hungarian economy without access to Russian oil and natural gas.

“Since such decisions require unanimity, it makes no sense for the commission to propose sanctions affecting natural gas and crude oil that would restrict Hungarian purchases,” Cabinet Minister Gergely Gulyas told HirTV on Sunday.

Countries like Hungary, which are heavily dependent on Russian energy, could benefit from additional flexibility as part of a compromise to drop their opposition to further sanctions, according to a person familiar with the matter.

Hungary’s position on imposing sanctions on Russian oil and gas “has not changed, we do not support it,” government spokesman Zoltan Kovacs said in a Facebook post on Monday. He refuted a report by the German television channel ZDF, which reported on Sunday that Hungary and Austria had lifted their veto threats.

German Vice Chancellor Robert Habeck said on Monday there was still no unity among EU member states over an oil embargo.

“I don’t know if an oil embargo is imminent,” he told reporters. “I hear different things and talk to my colleagues about different options. The other countries are not that far away and I think we have to respect that.

Germany would be able to manage such an embargo, he added, but it could still cause disruption, he warned. “We have created a situation in which Germany can resist an oil embargo. This means that the country will not remain without a trace.

Orban, who won re-election last month, had previously called sanctions on Russian energy his “red line”.

His government has agreed with Russia to allow their gas payments to be converted into roubles, testing the EU’s sanctions policy. Last week, Russia cut off gas supplies to Poland and Bulgaria, carrying out a threat to stop flows if payments are not made in roubles.

EU energy ministers are meeting in Brussels on Monday to discuss Russia’s demands to buy natural gas in roubles, and are also expected to discuss the oil sanctions package.

(Updates with quotes from Habeck in Germany from the seventh paragraph)

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