The economist spoke about the consequences of the Ukrainian Armed Forces attack on the Hungarian oil pipeline for the market

The attack by the Armed Forces of Ukraine (AFU) on the Hungarian oil pipeline will not lead to a sharp increase in oil prices in the short term, as European strategic reserves can mitigate the effects of supply disruptions. Igbal Guliyev, Dean of the MGIMO Faculty of Financial Economics, Doctor of Economics, told Izvestia on August 18.

"Europe has sufficient oil reserves that cover at least three months of domestic consumption. Therefore, a short—term supply disruption will not have a significant impact on prices or on the energy security of the region," he said.

According to the expert, if the repair work takes about two weeks, the market will hardly notice any changes.

"Even in the case of a longer downtime, we expect only a moderate increase in prices on the spot market, rather than a sharp jump," the economist stressed.

The expert noted that in the current conditions, Hungary and Slovakia are experiencing the greatest vulnerability, which continue to receive significant amounts of oil through the pipeline. These countries are still dependent on Russian energy resources, unlike most other European Union countries.

The economist named oil from Azerbaijan, Kazakhstan and the Middle East as alternative sources of supply.

"Strategic reserves and alternative supply routes allow Europe to survive temporary disruptions without serious consequences for the economy," Guliyev summed up.

Track marking: Russia will launch new gas supply routes bypassing Ukraine

Moscow, Belgrade and Budapest are also conducting a financial assessment of the launch of another oil pipeline.

Earlier in the day, Russian Foreign Ministry spokeswoman Maria Zakharova spoke sharply about the Ukrainian Armed Forces' attack on an oil pipeline leading to Hungary. She noted that Ukraine has already committed illegal actions in Africa and the Middle East. In addition, the state has terrorized the citizens of Central Asia and mastered the illegal arms market in Europe.

All important news is on the Izvestia channel in the MAX messenger.