A new report from the Center for the Study of Democracy (CSD) finds that Hungary has significantly increased its dependence on Russian crude oil since Russia’s full‑scale invasion of Ukraine, despite EU efforts to phase out Russian fossil fuels. The analysis, shared exclusively with DW, says Russian crude made up as much as 93% of Hungary’s oil imports in 2025, up from 61% in 2021. It also highlights Budapest’s deepening reliance on Russian gas and nuclear fuel.
Describing Hungary as “the most significant remaining stronghold of Russian energy dependence” in Europe, the report argues that this reliance is structurally reinforced by legal exemptions, long‑term contracts, commercial incentives and politically embedded business networks. Martin Vladimirov, director of the CSD’s energy and climate programme and a report author, warned that loopholes in the EU’s gas phaseout regime risk prolonging Europe’s dependence on Russian gas and undermining sanctions.
Hungary and Slovakia have used exemptions to the EU’s general ban on Russian oil imports to continue large volumes of imports since 2022. The US has also granted Hungary temporary exemptions: last November, then‑President Donald Trump said Hungary could keep importing Russian oil and gas for a year, citing difficulty in securing alternative supplies. The EU says it plans to end exemptions under its REPowerEU roadmap but has not published detailed implementation plans. Its stated timelines aim to stop Russian LNG by December 31, 2026, pipeline gas by September 30, 2027, and all remaining oil imports by the end of 2027.
Both Hungary and Slovakia oppose ending the exemptions. Hungary recently used its veto to block a €90 billion EU loan to Ukraine, with Prime Minister Viktor Orbán saying Hungary would not support the proposal until oil deliveries via the Druzhba pipeline resumed. The Druzhba pipeline, which has supplied Russian oil to Europe for decades, has not been operational since late January. Ukraine says Russia damaged the pipeline; Hungary and Slovakia have expressed doubts about that claim.
The CSD report says Hungary’s rising imports exploit EU exemptions and the discounted price of Russian crude. Hungary’s state oil company MOL benefited financially: earnings rose about 15% in 2025 to roughly €1.3 billion. The report notes, however, that those gains did not translate into lower consumer fuel prices. In 2025, Hungary’s average weekly pre‑tax fuel prices were higher than in neighbouring Czechia—about 18% higher for gasoline and 10% higher for diesel—suggesting consumers in Hungary and Slovakia did not benefit from the discounted crude.
Isaac Levi, an analyst at the Center for Research on Energy and Clean Air and a co‑author of the report, said claims that Hungary and Slovakia cannot diversify from Russian oil are not supported by evidence and called on the EU to end supplies that finance Moscow’s war effort immediately.
The findings come weeks before Hungary’s parliamentary elections on April 12. Opinion polls indicate Péter Magyar’s pro‑EU Tisza Party could challenge Orbán’s Fidesz. Energy policy has been a prominent campaign issue. Magyar said he would not cut Russian energy imports immediately because of concerns about alternatives, but would set a target date of 2035. Orbán has repeatedly defended Hungary’s ties with Moscow and its energy policy.
The report also questions the design of the EU’s oil and gas phaseout. Vladimirov said that despite political commitment to eliminate Russian gas imports, the EU’s approach relies heavily on gradual timelines, national discretion and complex origin verification mechanisms. Hungary’s long‑term contracts with Gazprom and dependence on the TurkStream pipeline make diversification difficult and indicate little appetite in Budapest to change course. The report warns that loopholes will allow Russian gas to continue entering European markets via Turkey, Azerbaijan and the Western Balkans, and estimates the EU could import about €13.4 billion of Russian gas before the September 2027 pipeline cutoff.
The Hungarian government did not respond to DW’s request for comment on the report.
Edited by: Srinivas Mazumdaru