Hungary's Continued Dependence on Russian Oil Amid Alternatives

Hungary has maintained its reliance on Russian oil despite the availability of alternative supplies, according to a report from the Center for the Study of Democracy (CSD). This reliance has resulted in higher domestic fuel prices compared to neighboring countries, raising questions about the economic benefits of purchasing cheaper Russian crude. The CSD's analysis highlights that while Hungary's largest oil company, MOL, profits significantly from these transactions, consumers do not see the benefits reflected in lower fuel prices.

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Following Russia's full-scale invasion of Ukraine in 2022, the European Union (EU) initiated measures to reduce member states' dependence on Russian energy. Hungary, Slovakia, and the Czech Republic received exemptions to gradually phase out Russian oil imports. However, while the Czech Republic has ceased purchasing Russian oil, Hungary and Slovakia have exploited this exemption to deepen their dependence. In 2025, over 92% of Hungary's crude oil imports were from Russia, a significant increase from 61% before the invasion.

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Hungarian Prime Minister Viktor Orbán's government has been criticized for its energy policies, particularly its continued purchases of Russian oil. MOL, Hungary's state-controlled oil company, is partially owned by foundations linked to Orbán, raising concerns about conflicts of interest and the flow of profits into political networks. The CSD report indicates that MOL's operating income has surged by 30% since the invasion, benefiting from the price differential between Russian and non-Russian oil.

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The CSD report challenges Orbán's assertions that Hungary has no viable alternatives to Russian oil. It notes that Hungary's refineries are capable of processing non-Russian crude without disruptions, as evidenced by Bulgaria and the Czech Republic, which have successfully transitioned away from Russian oil without supply issues. Critics argue that the economic rationale for continuing Russian oil imports is flawed, especially given that Hungarian consumers pay significantly higher fuel prices compared to their Czech counterparts.

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In response to the report, Orbán's government has defended its energy strategy, claiming that the reliance on Russian oil is a necessity due to Hungary's landlocked status. However, the CSD researchers assert that this dependence is a political choice rather than a logistical necessity. U.S. Secretary of State Marco Rubio acknowledged the exemption granted to Hungary as a reflection of the strong relationship between Orbán and former President Donald Trump, emphasizing the geopolitical implications of Hungary's energy policies.

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As Hungary approaches parliamentary elections in April, Orbán faces his first credible challenger in years, Péter Magyar. The CSD report's findings could impact Orbán's campaign, particularly his claims of managing energy costs effectively. The researchers have urged the EU to enact proposed legislation to ban Russian oil imports from Hungary and Slovakia, emphasizing the need for political will to close loopholes that continue to finance Russia's military actions.

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“Despite full access to alternative supply routes… Hungary has deepened its dependence on Russian oil, turning a temporary EU exemption into a permanent loophole in the sanctions regime,” — Martin Vladimirov, Director, CSD Energy and Climate Program

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“The final stage of Europe’s energy decoupling from Russia is within reach. What remains is the political will to close the loopholes that continue to finance the Kremlin’s war machine,” — CSD Report

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“Orbán has campaigned heavily on how his government has kept energy costs down, which the report calls into question.” — CSD Report

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