Hungary clings to the myth of cheap Russian gas: but pays more than the EU average
Since Russia invaded Ukraine in 2022, Europe’s gas market has undergone a major transformation. While EU countries have gradually reduced their dependence on Russian gas, Hungary continues to rely on Gazprom. In government communications, Russian energy is still presented as a “guarantee” of reduced utility bills. The reality, however, tells a different story: in recent years, Hungary has repeatedly paid more for natural gas than the EU average.
The government’s narrative: only Russian gas ensures low prices
Foreign Minister Péter Szijjártó regularly argues that without Russian supplies, Hungarian households would face double or triple energy bills. The government’s message is simple: without Moscow, there is no energy security and no affordable gas.
Reflecting this stance, Hungary has not only maintained but increased its imports of Russian gas (and oil), while most EU countries have scaled theirs back. By 2025, nearly 70 percent of Hungary’s gas imports are from Russian sources—among the highest rates in the EU.
The facts: Hungary pays more
The government’s assertions do not hold up under scrutiny. According to a G7 analysis, Hungary has often ended up paying more than the EU average due to Russian gas:
- In 2022, Hungary paid one of the highest gas prices on the continent—43 percent above the EU average. This was partly due to the government signing additional Gazprom contracts during a period of record-high prices.
- Since 2023, the average price of imported gas in Hungary has been 2 percent higher than in the rest of the EU.
- Meanwhile, countries like Poland, Germany and Austria—having cut ties with Russian pipelines—have come closer to, or even fallen below, the EU average price thanks to LNG imports.
Today, the “discounted Russian gas” claim is more a political slogan than an economic reality.
LNG: a missed opportunity
Most EU nations have shifted to American and Qatari LNG (liquefied natural gas) in recent years. Though it comes with added costs, such as transport and regasification, low US prices have made LNG overall more competitive than long-term Russian pipeline contracts.
Hungary does have LNG capacity via Croatia’s Krk Island, yet the bulk of its imports still come from Russian sources. This not only keeps prices high but also entrenches the country’s energy dependency.
Why does the government cling to Russian gas?
The reasons include not just political but also economic interests. State-owned utility MVM has earned substantial profits from trading Russian gas in recent years. These profits have generated hundreds of billions of forints in dividends for the national budget: revenue the government is unwilling to give up, even if it means higher energy costs in the long run.
Europe chooses a different path
The vast majority of EU countries have sought out new energy partners, primarily in the US and Qatar. The European Commission aims to completely end imports of Russian gas and oil by 2027. Hungary stands as an outlier: while others break free, its reliance on Russia is actually growing.
Summary
Hungary’s government continues to build much of its political messaging around the narrative of “cheap Russian gas,” yet statistics clearly show the country pays more for its energy than the EU average. While Europe moves to divorce itself from an aggressor state, Hungary remains tied to Gazprom: driven by economic, political and short-term budgetary interests.
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Hey Steiner, you dont want to pollute this article by illustrating to us you stupid arguments?
Cant wait to hear your nonsense & justifications 😀
When you have a free market for any commodity nobody pays more for anything unless there is corruption behind it. There has to be kickbacks going on putting money into Fidesz pockets.
This article as well in Telex.hu are overlooking some things:
The Ukraine war and the destruction of Nord Stream have had a profound impact on the European energy market. Before the conflict, Russian gas was a major energy source for Europe, with well-established pipelines like Nord Stream ensuring direct, cost-effective deliveries. However, the war disrupted this supply route, forcing European countries to turn to alternative sources, primarily liquefied natural gas (LNG).
The transition to LNG has come at a significant cost. Following the Nord Stream sabotage, European gas prices surged by 120-130% in 2022, while coal prices increased by 95-97%. In fact, Germany had to spend an additional $1.5 billion per day on alternative energy after Russia reduced gas flows through Nord Stream 1 by 75%. As a result, European industrial gas prices are now four-and-a-half times higher than those in the U.S.
While LNG may now be cheaper than Russian gas in some cases, it is still more expensive than the pipeline gas Europe relied on before the war. The war and the sabotage of Nord Stream have significantly raised Europe’s energy costs, and despite efforts to diversify energy sources, European countries continue to face high prices. The U.S. has emerged as a key LNG exporter to Europe, increasing its market share and weakening Russia’s energy dominance. Other LNG-exporting countries like Qatar and Australia have also benefited from the shift, and European nations with established LNG terminals, such as Spain and France, have capitalized on their strategic locations.
However, the increased reliance on LNG has placed significant financial strain on European industries and consumers. Countries like Hungary, which were heavily reliant on affordable Russian gas, have found it particularly challenging to adjust to higher energy costs. Despite the diversification of energy sources, the destruction of Nord Stream and the ongoing war has reshaped the European energy landscape and accelerated shifts in global energy dynamics.
The U.S. has strengthened its position as a major LNG exporter, while Russia has seen its role as Europe’s primary gas supplier diminish. Yet, even as Europe reduces its dependence on Russian energy, the financial toll of this transition remains high. European countries are continuing to grapple with the consequences of the ongoing energy crisis, which has reshaped their energy markets both economically and geopolitically.
In the larger context, Europe is being forced into LNG, but this shift comes with severe consequences. The price of energy, before the war, during the war, and in the aftermath of the criminal act of blowing up Nord Stream, has dramatically changed. The destruction of Nord Stream wasn’t just a geopolitical act; it has directly impacted the prices European consumers now face, making them pay a much higher price for energy than they did before the war and the formentioned criminal act. This deliberate sabotage has not only undermined Europe’s energy security but has also exacerbated the financial burdens on consumers and industries, which will be felt for years to come.
Nord Stream was dead in the water (pun intended) the moment Russia invaded Ukraine. Even if the infrastructure was intact, it wouldn’t be in use today, thus, the fact that it was sabotaged is arbitrary. You’re conflating myriad things at the same time to draw the conclusion that Europe has high gas prices due to its refusal to buy Russian gas, which is incorrect. Gas prices rocketed as a direct consequence of the war, Russian and non-Russian supplies alike (much to the benefit of the Russian war economy, I might add). Prices have since stabilised reverting to a longer term average. LNG has additional handling costs but price charts indicate this is offset by a cheaper purchase price, depending on the country of origin. Overall we’re all paying more for energy due to this senseless war, Hungary, Slovakia and the rest of Europe alike, while tying oneself to a single supplier via long term supply contracts has proven to be an unwise decision for Hungary due to the higher cost. LNG has the significant benefit of greater portability and the ability to chop and change supplier depending on geopolitics and price.
Yes, the Americans did admit that, and the Europeans paid for it, no, the sabotage guaranteed that even if the war ended, the US solidified its place as Europe’s energy guarantor. It wasn’t “arbitrary” lol.
No the proposition is not incorrect and pretty much all the literature on this issue, whether written by pro/anti-Russians, admit this fact: that energy costs have skyrocketed because the Europeans chose to ship in LNG from across the Atlantic instead of importing it through pipelines from Russia like they had been doing for decades. Gas prices rocketed due to gas scarcity, global gas prices rose globally for sure, but there’s a reason why it was so significant in Europe. You can’t simply pretend that Europe’s source of cheap energy for the last couple decades being shut-out of trade in Europe wasn’t the primary reason for the various 2022 recessions in Europe. Yes, and prices haven’t stabilised in Europe, hence the point, you can look at a graph for Germany, France, Poland, the Netherlands, the UK, Spain, etc, or read any news article on the current energy costs in any of these countries; they all tell the same story. The story being that this wishful thinking and fantasizing of Russian oil imports not actually being that big of deal if you lose them, is just that, wishful thinking. Also virtually any source will tell you the US LNG is very pricey, and has been rising since 2023-2024.
LNG may be better for some European countries in the short-term as a stand-in for Russian gas while the wars going on. But not for a landlocked country like Hungary, it’s not a serious nor feasible idea. Yeah, its portable, but not for Hungary or most landlocked countries, but i grant LNG is good if you want to cut out a state due to geopolitics, although price has little to do with it since its LNG that’s costly.
Peter has put out disinformation. Natural Gas EU Dutch TTF (EUR/MWh) 32.670 (Right now). Natural Gas EU Dutch TTF(Eur/MWh) Nov 1, 20221 49.37. Sep 13, 2021 65.491, Jan 18, 2021 32.71. (Source Trading Economics). Inflation adjusted Dutch TTF is the same as it was going back 10 years. Just look up the chart
https://tradingeconomics.com/commodity/eu-natural-gas
I should actually say inflation adjusted its’ probably cheaper than it was 10 years ago if you take the time to calculate it.
You just took gas prices from the height of Covid, 10 months into the Ukraine war, and tried citing that as proof that gas prices are cheaper. Also btw, you can zoom out see how cheap gas was in 2020 and every year prior.
Hungary – growing, deeper and deeper the HEFTY price we have payed, are paying – that will WORSEN by the Spring of 2026 through the name – Victor Mihaly. Orban and his Fidesz Government.