Hungary’s Russian oil reliance checks EU ban efforts: report | EUROtoday

Hungary has dramatically elevated its dependence on Russian crude oil since Moscow’s full-scale invasion of Ukraine over 4 years in the past, regardless of EU efforts to restrict the import of Russian fossil fuels into the bloc.

A brand new report from the Center for the Study of Democracy (CSD)a public coverage institute based mostly in Bulgaria, states that in 2025, Russian crude accounted for as a lot as 93% of Hungary’s oil imports, up from a 61% share in 2021. The report has been shared completely with DW.

It additionally factors to Budapest’s deepening reliance on Russian gasoline and nuclear vitality.

Describing Hungary as “the most significant remaining stronghold of Russian energy dependence” in Europe, the report says Prime Minister Viktor Orban’s authorities has purposefully enabled its dependence to deepen regardless of the EU’s makes an attempt to maneuver away from Russian fossil fuels.

“This analysis confirms that Hungary’s reliance on Russian oil, gas, and nuclear fuel is a structurally reinforced system sustained by legal exemptions, long-term contracts, commercial incentives, and politically embedded business networks,” it states.

The report additionally attracts consideration to Hungary’s continued excessive imports of Russian gasoline, saying loopholes within the EU’s Russian gasoline phaseout plan imply the gasoline will nonetheless be imported into the bloc after the late‑2027 deadline.

“The current design of the legal Russian gas phaseout regime contains several structural loopholes that risk prolonging Europe’s dependence on Russian gas and undermining the effectiveness of the broader sanctions architecture,” Martin Vladimirov, director of the vitality and local weather program at CSD and one of many authors of the report, informed DW.

The Hungarian authorities didn’t reply to DW’s request for touch upon the findings of the report.

Taking benefit of EU exemptions

Hungary and Slovakia have benefited from exemptions to the EU’s basic ban on Russian oil imports, with each nations persevering with to import in giant volumes since Russia launched its full-scale invasion of Ukraine in February 2022.

The US has additionally given Hungary exemptions from its sanctions on Russian vitality. Last November, US President Donald Trump mentioned Hungary might proceed to import Russian oil and gasoline for a yr. “It’s very difficult for him [Orban] to get the oil and gas from other areas,” Trump mentioned on the time.

The EU has already mentioned it plans to finish the exemptions in preparation for the complete phaseout of Russian oil and gasoline, as set out in its REPowerEU Roadmap. However, it has not but printed actual plans on the way it will try this.

The EU needs to finish Russian LNG imports into the bloc by December 31, 2026, and pipeline gasoline by September 30, 2027. It additionally says it stays dedicated to phasing out all remaining oil imports from Russia by the tip of 2027.

Both Hungary and Slovakia stay against the ending of the exemptions and need to proceed importing Russian fossil fuels. Last week. Hungary used its veto to dam a €90 billion ($104 billion) EU mortgage to Ukraine, with Orban saying Hungary couldn’t help the proposal till oil deliveries to it resumed by way of the Druzhba pipeline.

The pipeline has pumped Russian oil to Europe for many years however has not been operational since late January. Ukraine blames Russia for having broken the pipeline however each Hungary and Slovakia have expressed doubts over the claims.

Hungarian state oil firm reaps Russian oil advantages

The CSD report says that Hungary’s ramping up of Russian oil imports takes benefit of exemptions and the closely discounted value of Russian oil on world markets.

It additionally says that Hungarian state oil monopoly MOL has financially benefited from continued entry to discounted Russian crude, with earnings rising 15% in 2025 to round €1.3 billion.

It provides that regardless of these elevated revenues, advantages haven’t been handed on to customers in Hungary or neighboring Slovakia. The report’s findings say pre-tax gasoline costs in Hungary and Slovakia stay larger than in Czechia. For instance, in 2025, Hungary’s common weekly pre-tax gasoline costs have been 18% larger for gasoline and 10% larger for diesel than in Czechia.

Isaac Levi, an analyst with the Helsinki-based Center for Research on Energy and Clean Air and one of many report’s authors, says Hungary’s elevated dependence on discounted Russian crude is paying off for oil big MOL however not for the common Hungarian or Slovakian citizen.

“Claims that Hungary and Slovakia can’t diversify away from Russian oil are not backed up by evidence and the EU should call them out, ending supply that finances the Kremlin war-chest immediately,” he informed DW.

A significant election subject

News of the extent of Hungary’s elevated reliance on Russian fossil fuels comes just a few weeks forward of Hungarian parliamentary elections on April 12. Opinion polls counsel that Péter Magyar’s pro-EU Tisza Party, shaped in 2020, has an opportunity of beating Orban’s long-serving Fidesz social gathering.

The situation of Russian vitality imports has been a serious subject within the election marketing campaign. Magyar has mentioned he wouldn’t finish Russian vitality imports instantly, because of issues over alternate options, however would set a goal date of 2035.

Orban, in the meantime, has repeatedly defended Moscow and Hungary’s reliance on Russian fossil fuels.

The CSD report additionally raises a number of questions concerning the EU’s oil and gasoline phaseout plan.

“Despite the political commitment to eliminate Russian gas imports, the EU’s current approach relies heavily on gradual implementation timelines, national discretion and complex origin verification mechanisms,” report writer Vladimirov mentioned.

It says that Hungary’s long-term contracts with Russian state gasoline firm Gazprom, in addition to its reliance on the Turkstream pipeline, imply it has grow to be extraordinarily depending on Russian gasoline and has proven little urge for food to diversify.

It additionally notes that loopholes within the EU gasoline phaseout plan will enable Russian gasoline to proceed to enter European markets by Turkey, Azerbaijan and the Western Balkans, estimating that the EU will import an estimated €13.4 billion of Russian gasoline earlier than the September 2027 deadline it has set to finish imports.

Edited by: Srinivas Mazumdaru