If not economics, then what? Hungary’s reluctance to ditch Russian oil
Hungary has sparked renewed tensions within the European Union by vetoing plans to phase out Russian oil, citing economic concerns.
Hungary vetoes getting rid of Russian oil
As Euro News reports, Hungary has once again stood in the way of the European Union’s collective effort to phase out Russian oil, vetoing a roadmap aimed at ending energy imports from Russia. PM Orbán’s government argues that such a move would impose unbearable costs on Hungarian households, warning that energy bills could double or even triple. Despite the EU’s strategy to sever energy ties with Russia since the start of the Ukraine invasion, Hungary maintains its commitment to Russian oil, claiming economic necessity.
A stop to weaponising energy exports
The European Commission has urged member states to adopt binding national plans to eliminate Russian gas, oil, and nuclear fuel. EU Energy Commissioner Dan Jorgensen highlighted progress made so far: the EU has ceased coal imports from Russia and drastically reduced oil and gas imports, though EUR 23 billion was still paid to Moscow for energy last year. “We will no longer allow Russia to weaponise energy exports,” Jorgensen stated.
Political or economic choice?
However, analysts argue Hungary’s position is not justified by technical or economic limitations. According to joint studies by the Centre for the Study of Democracy and the Centre for Research on Energy and Clean Air, Hungary’s increased reliance on Russian oil, from 61% before the war to 86% in 2024, is a political choice. They point out that the Adriatic pipeline from Croatia could fully meet Hungary’s needs with non-Russian crude. Nonetheless, Hungary continues to import Russian oil, allowing energy company MOL to profit by refining cheaper Russian crude and selling fuel at inflated prices, currently 5% higher than the EU average.
Refineries are tailored to Russian oil
While Orbán claims the shift away from Russian oil would cost hundreds of billions of forints and raise utility bills, independent research suggests the impact would be more moderate. The Climate Policy Institute concludes that the country’s fuel supply could be maintained through the Adriatic pipeline and alternative imports. Still, MOL’s CEO, Zsolt Hernádi, stresses that refineries are tailored to Russian oil and adapting them is costly and complex.
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