Hungary's Prime Minister-Elect States Intent to Continue Russian Energy Purchases Amid EU Phase-Out Plans

Hungary's Prime Minister-elect Péter Magyar held his first press conference on Monday following his election victory on April 12. He stated that the country will continue to purchase energy from Russia to prioritize the cheapest available oil and gas. This approach appears to differ from his earlier campaign commitment to phase out Russian energy imports by 2035.

Magyar emphasized the fixed geography between Russia and Hungary. He said the government will procure crude oil and gas in the cheapest and safest manner possible. His remarks were made to reporters during the press conference.

“No one can change geography, Russia and Hungary are here to stay. " — Péter Magyar, Prime Minister-elect of Hungary (Euronews) The European Union has welcomed the change in Hungary's leadership after the previous prime minister's tenure. The previous administration had criticized the EU's energy transition policies and its restrictions on Russian energy imports.”

Hungary relies on Russian energy for about 90% of its supply, making it one of the most dependent EU member states.

Energy Supply Challenges in Hungary Hungary faces an energy crisis influenced by the war in Iran, which has led to higher prices and potential shortages worldwide.

In January, the Druzhba pipeline, a key route for Russian oil through Ukraine, was damaged following a strike on energy infrastructure in western Ukraine, according to Kyiv. Flows through the pipeline dropped to zero in February and March. As a landlocked country with limited alternatives, Hungary drew on strategic reserves and reduced refinery operations to manage the shortfall.

The country's sole refiner increased seaborne imports via Croatia's Omisalj terminal, supplied through the Adria pipeline. These imports reached about 100,000 barrels of oil per day in March, consisting of crude from Libya and Norway.

EU-Wide Phase-Out Efforts The EU plans to phase out Russian energy imports by the end of 2027.

Magyar's comments, including a suggestion to lift sanctions on Russian energy, raise questions about potential challenges for EU leaders in implementing this timeline. He noted that no one wants to pay excessively for energy supplies. Replacing Russian oil with alternatives has increased Hungary's costs.

Even with secured volumes via Croatia, higher input prices have reduced profit margins for refiners. The EU's broader energy transition seeks to diversify sources and reduce reliance on Russian supplies amid geopolitical tensions. Hungary's position could affect negotiations within the EU on energy policy.

The stakes involve energy security, costs for consumers, and compliance with bloc-wide commitments. Future steps may include discussions on sanctions and import strategies as the phase-out deadline approaches.