Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Why is Hungary not backing EU sanctions on Russian oil?

Why is Hungary not backing EU sanctions on Russian oil?

Hungary, which depends on Russia for the bulk of its oil and gas needs, says sanctions will adversely affect its economy.

As the European Union tries to impose sanctions on Russian oil over the war in Ukraine, Hungary has emerged as one of the biggest obstacles to unanimous support needed from the bloc’s 27 member nations.

The president of the EU’s executive commission, Ursula von der Leyen, last week proposed phasing out imports of Russian crude within six months and refined products by the end of the year to wean Europe off its dependence on Russian fossil fuels and cut off a lucrative source of income that helps fund Russia’s war.

But Hungary’s nationalist government – one of the most friendly to Moscow in the EU – insists it will not support any sanctions that target Russian energy exports.

Hungary is heavily reliant on Russian oil and gas and says the EU oil boycott would be an “atomic bomb” for its economy and destroy its “stable energy supply”.

Von der Leyen made a surprise trip to Hungary’s capital on Monday for negotiations with Prime Minister Viktor Orban to try to salvage the proposal, but no agreement has yet been reached.

Here’s what to know about the talks and what comes next:




What is Hungary saying?


Hungary’s government has insisted it will block any EU sanctions proposals that include Russian energy, calling it a “red line” that opposes Hungary’s interests. It gets 85 percent of its natural gas and more than 60 percent of its oil from Russia.

Orban, widely considered one of Russian President Vladimir Putin’s closest EU allies, has reluctantly supported previous EU sanctions on Moscow, including an embargo on Russian coal. But he has argued that such moves hurt the bloc more than they do Russia.

Since taking power in 2010, Orban has deepened Hungary’s dependency on Russian energy and says its geography and energy infrastructure make a shutdown of Russian oil impossible.

“We said that sanctions on coal would be all right because they don’t affect Hungary; but now we really have reached a red line, a double line, because the oil and gas embargo would ruin us,” Orban said in a radio interview on Friday.

The landlocked country has no seaport to receive global oil shipments and must rely on pipelines. Plus, a flagship government programme to reduce utility bills depends on the relatively low cost of Russian fossil fuels and is a major factor underlying Orban’s domestic political support.

Converting Hungary’s oil refineries and pipelines to process oil from non-Russian sources would take five years and require a massive investment, Orban said. That would further drive up high energy prices, leading to shutdowns and unemployment, he said.




Is there a chance for compromise?


Besides Hungary, Slovakia and the Czech Republic are asking for years to phase out Russian oil. The European Commission has said it is willing to help countries that are particularly dependent on Russian oil.

“We acknowledge that Hungary and other countries that are landlocked and have significant energy dependency on Russian oil supplies are in a very specific situation which requires that we find specific solutions,” commission spokesman Eric Mamer said on Tuesday.

Mamer said Hungary has “legitimate concerns” about oil supplies and that a phase-out of Russian oil could include “differentiated timelines corresponding to the different situations of specific countries”.

“That is definitely one of the variables, because obviously if you are talking about investment in upgrading infrastructure, you need time,” Mamer said.

He did not specify which countries might be offered delayed implementation of an oil embargo or for how long.

In a tweet on Monday after her meeting with Orban, von der Leyen said the discussion had been “helpful to clarify issues related to sanctions and energy security” and that progress had been made but “further work is needed”.

French President Emmanuel Macron spoke with Orban on Tuesday about “guarantees” needed for some member states, like Hungary, that “are in a very specific situation with regard to pipeline supplies from Russia”, according to Macron’s office.




What does Hungary have to gain?


Blocking the sanctions package could be used as leverage in a separate conflict between Budapest and the EU.

The bloc has withheld around $8bn in coronavirus pandemic recovery funds from Hungary over what it sees as insufficient anti-corruption measures and has launched a process to withhold further support over breaches of the EU’s rule-of-law principles.

Hungary has been accused of backsliding on democratic values by exerting excessive control over the judiciary, stifling media freedom and denying the rights of LGBT people.

Orban’s government denies the allegations and argues that the EU penalties are politically motivated.

But with Hungary’s economy reeling amid high inflation and a major budget deficit, it will need that EU money for an economic recovery. As EU officials negotiate with Hungary to gain its support for sanctions on Russian energy, the release of withheld funds could serve as a bargaining chip.


AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
×