Hungary and Slovakia resist EU pressure to cut Russian energy ties
Hungary and Slovakia are exploiting the opportunity provided by the European Commission and continue to rely on oil and gas from Russia. Although Brussels anticipated they would eventually seek alternative supply sources, Budapest and Bratislava maintain that they cannot do without Russian resources, despite the availability of other options, reports Politico, citing recent studies.
The Politico service references a new analysis conducted by the think tanks Center for the Study of Democracy and the Centre for Research on Energy and Clean Air (CREA). The portal recalls that following the Russian invasion of Ukraine, the European Union significantly reduced its import of gas and oil from Russia, transported via pipelines. However, the European Commission allowed unrestricted imports to Hungary and Slovakia, which were most heavily dependent on supplies from Vladimir Putin's country.
The intention was for these countries to have more time to find alternative supply sources. However, as time progresses, neither Budapest nor Bratislava is doing much to facilitate this transition. In fact, quite the opposite appears to be happening.
"Hungary and Slovakia show no real signs of decoupling from Russian crude despite the EU legal text stating this was the exemption’s purpose," according to the analysis by the Center for the Study of Democracy and CREA. "Hungary increased its Russian crude reliance from 61% pre-invasion to 86% in 2024, and Slovakia remained almost 100% dependent on supply from Moscow," the researchers calculate.
As Politico highlights, this study emerges at a critical moment for both countries, as the EU prepares to completely sever all Russian energy connections. Hungary and Slovakia oppose these plans, arguing that it will increase costs for consumers and threaten both countries' access to energy sources.
What options do Hungary and Slovakia have
Meanwhile, according to the Center for the Study of Democracy and CREA, these countries can import non-Russian crude oil from Croatia via the Adria pipeline. Hungarian giant MOL can also refine oil imported from other countries. In terms of replacing gas from Russia, LNG from the USA and Qatar is available in the European market.
Politico adds that, according to Luke Wickenden, an energy analyst at CREA, consumers in the region do not benefit from discounts resulting from continuous access to cheaper Russian fuel. Fuel prices at petrol stations remained 2-5% above the EU average in 2024, he said. However, MOL recorded a 34 per cent increase in operating revenues.
