Billions from Hungary’s utility protection fund flow to Russia amid energy subsidies
The Hungarian government’s Utility Protection Fund, established in 2022 to shield citizens from soaring energy prices, has become a significant financial burden. Recent calculations reveal that the total amount allocated for “utility protection” since late 2022 is approaching HUF 5 trillion Hungarian (approximately EUR 13 billion).
The Utility Protection Fund’s financial allocations have been substantial and varied over the past few years. According to Népszava’s report, in 2024, the fund disbursed nearly HUF 1.3 trillion (EUR 3.2 billion), which represents about half of the HUF 2.4 trillion (EUR 6) spent in the previous year. The state-owned energy company MVM emerged as the primary beneficiary, receiving the lion’s share of the funds at HUF 2.437 trillion. Following MVM, district heating companies were the second-largest recipients, with an allocation of HUF 831 billion (EUR 2 billion).
Criticism
The scale of this spending is put into perspective when compared to other government expenditures. Over the past three years, the Orbán government has spent less on national defence and law enforcement combined than on utility protection. The fund’s expenditure is more than twice the amount allocated for family allowances and triple the state’s cultural spending.
Critics argue that this massive financial injection is essentially a PR operation costing taxpayers trillions of forints. The government’s claim of having the cheapest household electricity and gas prices in the EU is challenged, as it’s achieved through budget reallocation rather than economic efficiency.
Russian gas
A significant portion of the fund’s resources indirectly ends up in Russia. Despite government communication suggesting otherwise, MVM purchases Russian gas at market prices or higher. This arrangement means that a large part of the HUF 5 trillion has ultimately been transferred to Russia, potentially funding its war efforts in Ukraine.
The fund’s existence also contradicts the government’s narrative about the benefits of the 2021 Russian gas purchase agreement and challenges claims that the EU wants to prohibit reduced utility rates.
Questionable allocations
According to Népszava, the government has interpreted “utility protection” broadly, allocating funds to various entities seemingly unrelated to energy costs. Recipients include prisons, secret services, courts, prosecutors, police, military sports, schools, hospitals, and even the Hungaroring racing circuit.
Future outlook of the fund
The fund, partially financed by extra taxes on various sectors, has faced revenue shortfalls. In 2023, the energy sector paid only HUF 435 billion (EUR 1.1 billion) instead of the planned HUF 716 billion (EUR 1.8 billion). Similar shortfalls were seen in mining royalties and pharmaceutical company contributions. For 2025, the fund’s expenditures are projected at HUF 880 billion (EUR 2.2 billion). However, with lower expected extra tax revenues, the system may require an additional HUF 420 billion (EUR 1.05) from other budget sources.
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The traitor Fidesz government has been funding the Russian war against Ukraine all along. Hungary is purchasing energy from Russia “at market prices or higher”. The whole propaganda line about needing Russian energy was a lie. A very real reason you would pay more than market prices for anything is for kickbacks to the Fidesz oligarchy.
You need a reality check, son.
THe money Russia’s been getting from us for its gas is a spit in the ocean. It may have bought them a few tanks and V.B.L.s. Russia’s income certainly does not depend on the paltry amount of gas we import from it.
On the other hand, blindly pursuing the Leftist ideology of blocking Russian gas, without having a viable alternative, would have hurt US dearly. Just ask the Germans who have been shivering in dying in their homes because they can’t afford to heat them. No, thanks, not for me. I’m happy to pay Russia for cheap(er) gas if we don’t have anything comparable or cheaper available. And we don’t because the demented Left opposes such alternatives, too.
What else would we expect, Larry? The Fidesz business model is not about to change.
The “aged” expression of the “opening of a pandoras box” again, as has been the case of CONSISTENCY” throughout the years (16) sixteen, that we Hungary, have been Governed by this Orban led “Heinous” Fidesz Government of Hungary, that are “Traitors” to the citizens of Hungary.
Hungary has NOW become, being part of evert day word usage, from Brussels, throughout the country’s of the European Union, Great Britain & Northern Ireland, globally, country’s that are Governed under DEMOCRACY, that see’s us Hungary, being rightfully referred to, as the “Judas” country of DEMOCRACY.
Hungary – our name, our Respect, our Trust has been SLAUGHTERED by the Orban – Fidesz Government.
The mounting PRESSURIZATION on the name Orban – on the “toxic” in culture Fidesz Government he leads, that have DELIVERED us, over (16) sixteen years, that we FIGHT to survive, in millions.
WHAT is our FUTURE ???
Answer – teetering on being a cataclysmic disaster.
We “fight the fight” – in bringing the Orban led Fidesz Government – DOWN – from our SOLIDARITY, our to-getherness as a country, growing in ACCEPTING – that we have been, through the BETRAYAL of this Orban led “Judas” Fidesz Government, delivered to the FRAIL place we are, at this point in time, as a country.
The subject of this article, another ADDITION – to the mounting gargantuan pile of Facts and Truths – if we as a country, want ANY future, that must be under DEMOCRACY, a member of the European Union, a member of N.A.T.O. – that accepts and practices that DIALOGUE dominates – is DEMOCRACY.
“Now this is not the end.
It is not even the beginning of the end.
But it is, perhaps, the end of the beginning”.
Orban & his Fidesz Government are DESERVING of our “elevated” – WRATH, and we, as a country in Solidarity – fighting THEM with Truth & Facts – that our MENU – of what STILL is to be REVEALED – of there Betrayal, there Heinous conduct as a Government, our DELIVERY of Truth & Facts, by use of DEMOCRACY, in Solidarity – we can, as a country – have a FUTURE.
WHAT is to COME out ???
Rest assured, it won’t be, as Orbans “mate” Trump would call it FAKE News – but MIND-BOGGLING.
Oh blah blah blah. Russia this, Russia that. Give it up already.
Fact is, unless and until we can become energy-independent, which can only be achieved with nuclear, fracking, drilling, etc. (not dumb solar and wind), we depend on imported energy sources. Russia’s gas makes most sense in that regard. Whether we pay for that gas through this subsidy fund or directly by end consumers paying the full price is totally irrelevant.
You want to stop paying Russia for its gas? Stop opposing commonsense, cheap, reliable sources of energy, including coal!