Hungary's Russian Oil Reliance Tests EU Ban Efforts: Report
A new report from the Center for the Study of Democracy, shared exclusively with DW, says that Hungary has increased its dependence on Russian oil since 2021.
A new report from the Center for the Study of Democracy, shared exclusively with DW, says that Hungary has increased its dependence on Russian oil since 2021. It has also become highly dependent on Russian gas.Hungary has dramatically increased its dependence on Russian crude oil since Moscow's full-scale invasion of Ukraine over four years ago, despite EU efforts to limit the import of Russian fossil fuels into the bloc.
A new report from the Center for the Study of Democracy (CSD), a public policy institute based in Bulgaria, states that in 2025, Russian crude accounted for as much as 93% of Hungary's oil imports, up from a 61% share in 2021. The report has been shared exclusively with DW.
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It also points to Budapest's deepening reliance on Russian gas and nuclear energy.
Describing Hungary as "the most significant remaining stronghold of Russian energy dependence" in Europe, the report says Prime Minister Viktor Orban's government has purposefully enabled its dependence to deepen despite the EU's attempts to move away from Russian fossil fuels.
"This analysis confirms that Hungary's reliance on Russian oil, gas, and nuclear fuel is a structurally reinforced system sustained by legal exemptions, long-term contracts, commercial incentives, and politically embedded business networks," it states.
The report also draws attention to Hungary's continued high imports of Russian gas, saying loopholes in the EU's Russian gas phaseout plan mean the fuel will still be imported into the bloc after the late‑2027 deadline.
"The current design of the legal Russian gas phaseout regime contains several structural loopholes that risk prolonging Europe's dependence on Russian gas and undermining the effectiveness of the broader sanctions architecture," Martin Vladimirov, director of the energy and climate program at CSD and one of the authors of the report, told DW.
The Hungarian government did not respond to DW's request for comment on the findings of the report.
Taking advantage of EU exemptions
Hungary and Slovakia have benefited from exemptions to the EU's general ban on Russian oil imports, with both countries continuing to import in large volumes since Russia launched its full-scale invasion of Ukraine in February 2022.
The US has also given Hungary exemptions from its sanctions on Russian energy. Last November, US President Donald Trump said Hungary could continue to import Russian oil and gas for a year. "It's very difficult for him [Orban] to get the oil and gas from other areas," Trump said at the time.
The EU has already said it plans to end the exemptions in preparation for the full phaseout of Russian oil and gas, as set out in its REPowerEU Roadmap. However, it has not yet published exact plans on how it will do that.
The EU wants to end Russian LNG imports into the bloc by December 31, 2026, and pipeline gas by September 30, 2027. It also says it remains committed to phasing out all remaining oil imports from Russia by the end of 2027.
Both Hungary and Slovakia remain opposed to the ending of the exemptions and want to continue importing Russian fossil fuels. Last week. Hungary used its veto to block a €90 billion ($104 billion) EU loan to Ukraine, with Orban saying Hungary could not support the proposal until oil deliveries to it resumed via the Druzhba pipeline.
The pipeline has pumped Russian oil to Europe for decades but has not been operational since late January. Ukraine blames Russia for having damaged the pipeline but both Hungary and Slovakia have expressed doubts over the claims.
Hungarian state oil company reaps Russian oil benefits
The CSD report says that Hungary's ramping up of Russian oil imports takes advantage of exemptions and the heavily discounted price of Russian oil on global markets.
It also says that Hungarian state oil monopoly MOL has financially benefited from continued access to discounted Russian crude, with earnings rising 15% in 2025 to around €1.3 billion.
It adds that despite these increased revenues, benefits have not been passed on to consumers in Hungary or neighboring Slovakia. The report's findings say pre-tax fuel prices in Hungary and Slovakia remain higher than in Czechia. For example, in 2025, Hungary's average weekly pre-tax fuel prices were 18% higher for gasoline and 10% higher for diesel than in Czechia.
Isaac Levi, an analyst with the Helsinki-based Center for Research on Energy and Clean Air and one of the report's authors, says Hungary's increased dependence on discounted Russian crude is paying off for oil giant MOL but not for the average Hungarian or Slovakian citizen.
"Claims that Hungary and Slovakia can't diversify away from Russian oil are not backed up by evidence and the EU should call them out, ending supply that finances the Kremlin war-chest immediately," he told DW.
A major election topic
News of the extent of Hungary's increased reliance on Russian fossil fuels comes a few weeks ahead of Hungarian parliamentary elections on April 12. Opinion polls suggest that Péter Magyar's pro-EU Tisza Party, formed in 2020, has a chance of beating Orban's long-serving Fidesz party.
The issue of Russian energy imports has been a major topic in the election campaign. Magyar has said he would not end Russian energy imports immediately, due to concerns over alternatives, but would set a target date of 2035.
Orban, meanwhile, has repeatedly defended Moscow and Hungary's reliance on Russian fossil fuels.
The CSD report also raises several questions about the EU's oil and gas phaseout plan.
"Despite the political commitment to eliminate Russian gas imports, the EU's current approach relies heavily on gradual implementation timelines, national discretion and complex origin verification mechanisms," report author Vladimirov said.
It says that Hungary's long-term contracts with Russian state gas company Gazprom, as well as its reliance on the Turkstream pipeline, mean it has become extremely dependent on Russian gas and has shown little appetite to diversify.
It also notes that loopholes in the EU gas phaseout plan will allow Russian gas to continue to enter European markets through Turkey, Azerbaijan and the Western Balkans, estimating that the EU will import an estimated €13.4 billion of Russian gas before the September 2027 deadline it has set to end imports.
Edited by: Srinivas Mazumdaru
(The above story first appeared on LatestLY on Mar 23, 2026 10:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).