Why Hungary Still Buys Russian Oil: An Explainer of Politics, Energy and Economics
Across Europe, efforts to wean countries off Russian energy have been a central theme of policy debates since the Kremlin’s full-scale invasion of Ukraine in 2022. While many European Union nations have steadily reduced their reliance on Moscow’s oil and gas over the past three years, Hungary remains a notable outlier — continuing to import large quantities of Russian crude, even as its neighbours shift toward alternative supplies and amid rising political tension over energy dependence.
This article explains what’s happening, why it matters, who it affects, and how the situation may evolve.
What the Issue Is
At its core, the issue revolves around Hungary’s continued purchase of Russian oil despite broader European plans to reduce or eliminate dependence on Russian fossil fuels.
Most EU states have dramatically cut oil and gas imports from Russia as part of sanctions regimes and broader policy goals aimed at reducing Russia’s economic leverage and curbing revenue that could fund the war in Ukraine. But Hungary — under Prime Minister Viktor Orbán — has resisted these efforts and maintained deep energy ties with Russia.
This resistance has drawn criticism from other EU capitals and analysts who argue that Budapest’s approach undermines collective European strategy and extends Russia’s influence. Hungary’s position is tied up with its domestic energy needs, political choices, and historical relationships.
Historical Context: How Hungary Became Dependent on Russian Energy
Hungary’s reliance on Russian energy has deep roots:
- During the Cold War era and throughout the post-Soviet decades, Hungary built much of its energy infrastructure to connect with Soviet and later Russian suppliers.
- Russia has supplied a majority of Hungary’s crude oil and natural gas for decades, providing a stable and relatively cheap source of fuel for Hungarian households and industries.
- Even as other EU members diversified their supply sources, Hungary continued to rely on Russian crude and gas because of infrastructure and economic considerations.
After Russia’s invasion of Ukraine in February 2022, the EU agreed a package of sanctions aimed at reducing dependency on Russian energy. But Hungary secured special exemptions that allowed it to continue importing Russian oil beyond EU deadlines, arguing that its landlocked position and existing refinery capacities made a sudden shift difficult and costly.
These exemptions — agreed under EU rules that allow temporary derogations for countries with specific infrastructure constraints — helped entrench Russia as Hungary’s dominant supplier.
Why the Issue Exists: Economics, Politics and Security
1. Infrastructure and Logistics
Hungary is a landlocked country without direct access to seaports, an important factor in energy logistics. Much of its oil historically flowed through the Druzhba pipeline, which starts in Russia and crosses Ukraine before reaching Hungary and Slovakia.
Although alternative routes — such as the Adria pipeline via Croatia — exist and could theoretically supply non-Russian crude, Budapest has often chosen to stick with Russian supplies.
2. Economic Interests and Energy Prices
Analysts and policy researchers say economic incentives play a significant role. Russian oil generally comes at a discount compared with some alternatives, and Hungary’s largest oil corporation MOL Group has seen increased profits from refining and selling that crude domestically.
Crucially, a 2026 report by the Centre for the Study of Democracy found that Hungary’s dependence on Russian oil was not forced by technical or logistical limits but was instead the product of political and commercial choices that deepened reliance even when alternatives were available.
3. Political Alignment
Political leadership has also shaped Hungary’s path:
- Prime Minister Viktor Orbán’s government has positioned itself as an advocate for pragmatism in energy procurement, arguing that cutting off Russian oil quickly would harm Hungary’s economy and citizens.
- Orbán has also cultivated a foreign policy that sometimes diverges from other EU capitals, including more cooperative relations with Russia, while resisting parts of the EU’s sanctions framework.
In 2025, Hungary even secured a one-year US exemption from certain sanctions on buying Russian oil and gas, negotiated in part through diplomatic engagement with Washington’s leadership, which acknowledged Hungary’s unique energy situation.
How the Situation Works in Practice
Energy Supply Routes
Hungary’s crude supply mainly comes via pipelines. The most important is:
| Pipeline | Origin | Path | Notes |
|---|---|---|---|
| Druzhba Pipeline | Russia | Through Ukraine to Hungary & Slovakia | Primary route for decades; disruptions can impact supply |
| Adria Pipeline | Global crude via Croatia | Through Croatian territory | Has capacity for non-Russian oil but underutilized |
| Sea-borne imports | Various | To Croatian Adriatic ports then piped | Allowed under EU exemptions when pipeline supplies halt |
This table illustrates that Hungary has mechanical alternatives to Russian imports, but political decisions have kept the Druzhba route — and Russian suppliers — dominant.
Sanctions and Exemptions
EU sanctions agreements aimed to phase out Russian fossil fuels over time. But derogations and exemptions allowed Hungary (and Slovakia and the Czech Republic initially) to continue buying Russian oil past key deadlines. Those special arrangements were intended to give time for diversification but ended up enabling prolonged dependence.
Similar exemptions were granted by the United States to protect Hungary’s access to Russian oil and gas in the face of American sanctions.
Recent Disruptions
In early 2026, Russian attacks damaged the Ukrainian segment of the Druzhba pipeline, halting oil flows to Hungary and Slovakia. This offered a real-world test of alternative routes and ignited political debate about reliance on Russian supplies.
Budapest sought help from Croatia to reroute supplies via the Adria pipeline, invoking the EU exemption that allows sea-borne imports when pipeline deliveries are disrupted.
Who Is Affected and How
Hungarian Consumers and Businesses
Ordinary people feel effects mostly through fuel prices, which have sometimes been higher in Hungary compared to neighbouring countries that diversified. Despite cheap Russian crude entering the system, downstream retail fuel costs don’t always reflect that advantage.
Industries reliant on energy — especially transportation and manufacturing — are deeply tied to consistent crude supplies, making energy policy a direct economic concern.
European Union Dynamics
Hungary’s stance affects EU politics and policy coherence:
- It complicates collective EU sanctions implementation.
- It creates tensions with Brussels and some member states pushing for faster decoupling from Russian energy.
- It raises questions about solidarity and shared security strategy within the EU bloc.
Geopolitical Signals
Hungary’s unwavering energy ties with Russia send a political message to the world. Critics say this helps sustain Moscow’s war-fighting capacity by maintaining a major export market for its oil — even as sanctions aim to constrict Russia’s revenue.
Supporters of Hungary’s approach counter that sudden shifts in energy sourcing could disrupt European markets and harm economic stability without guaranteed alternatives.
Impact on People, Society, Economy and Environment
Economic Impact
- Consumers may not see lower fuel prices despite cheaper crude because of how profits are distributed across the energy value chain.
- Industries reliant on fossil fuels have operated with relative price stability, avoiding some market shocks that might come from abrupt diversification.
Political and Social Impact
- Debate around energy policy has become electoral politics in Hungary, with opposition parties promising greener diversification and closer alignment with EU norms.
- Internationally, Hungary’s position has made it a focal point in EU-level discussions about unity and sanctions effectiveness.
Environmental Considerations
Long-term reliance on Russian oil slows investment in clean energy and diversification strategies that might reduce carbon emissions. Critics argue this hinders Hungary’s climate goals compared to faster-adopting EU peers.
What Might Happen Next
The future of Hungary’s energy relationship with Russia involves several possible scenarios:
1. Gradual Diversification
Hungary could take advantage of alternative infrastructure (such as sea-borne imports via Croatia) to gradually shift away from Russian crude, aligning with EU goals and reducing geopolitical friction.
2. Policy Shift After Elections
Hungary’s national elections in April 2026 will shape energy policy direction. If opposition parties gain power, there may be renewed momentum toward EU alignment and diversification away from Russian oil.
3. Continuation of Status Quo
Orbán’s government could maintain current policy — continuing Russian oil imports and leaning on political exemptions — particularly if geopolitical tensions and pipeline disruptions persist.
4. Wider Regional Cooperation
Energy cooperation frameworks within Central Europe (such as joint infrastructure projects with Croatia or Slovakia) could open new supply pathways and diminish reliance on single source pipelines.
Conclusion
Hungary’s ongoing imports of Russian oil reflect a complex interaction of economic choices, historical dependency, political strategy, and EU policy frictions. While alternatives exist on paper, political and commercial considerations have kept Russian supplies at the centre of Hungary’s energy mix.
The issue resonates beyond energy economics, touching on EU unity, geopolitics, and the broader strategy of how Europe manages dependencies in a fractured global landscape. Whether Hungary continues its current path or moves toward diversification will be shaped by domestic politics, regional cooperation, and international pressures in the years ahead.