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Hungary Wants Even More of Russia’s Energy

Vladimir Putin 2017 New Year Address to the Nation. Image Credit: Creative Commons.
Vladimir Putin 2017 New Year Address to the Nation.

While most of Europe has taken initial steps to wean itself off of Russian energy sources, Hungary has notably bucked the trend. The Hungarian government led by Prime Minister Viktor Orban has hesitated to alter its cordial relationship with Moscow, even as Russia’s invasion force continues to fight a bloody war of conquest next door. 

Hungary Holds out for Russian Gas

A July 21 visit by Hungarian Foreign Minister Peter Szijjarto to Moscow highlighted the lengths Budapest is willing to go to maintain what it describes as a pragmatic relationship with Moscow. Hungary has shown little interest in decreasing Russia’s current 85% share of its gas imports. Budapest prefers instead to secure future Russian supplies. In a news conference with Russian Foreign Minister Sergei Lavrov, Szijjarto expressed Hungary’s desire to buy an additional 700 million cubic meters of gas in addition to its contractually agreed 3.5 billion cubic meters. Lavrov said the Hungarian proposal would be “immediately forwarded and studied.”

While Hungary’s Szijjarto requested to buy even more gas from Russia, the rest of the European Union is for the most part seeking alternative sources for its energy needs and de-emphasizing Russia’s role in their energy supply chains. Just days before the Hungarian foreign minister’s visit to Moscow, the European Commission urged member states to decrease their overall gas usage by 15% through the upcoming winter of 2022-2023 in order to better weather supply shocks triggered by Moscow. On July 18, Szijjarto said that Hungary was in negotiations with Russia to reroute all its gas imports through the so-called Turkstream pipeline, which carries gas to Hungary via the Black Sea, Turkey, Bulgaria, and Serbia. While Hungary also receives gas via a pipeline that moves through Austria, its gas imports mostly come through Turkstream, which Szijjarto called Hungary’s most “reliable” source. 

Oil from Russia has also been in the EU’s crosshairs, with the bloc agreeing to reduce its imports from Russia by 90% before the end of the year – although oil carried to Europe by pipeline was not covered under this arrangement. Orban, who was the most aggressive opponent of such a plan, said in May that a ban on Russian oil would be akin to dropping an “atomic bomb” on the Hungarian economy. He pointed out that the pipeline-exempting terms of the agreement leave Budapest free to continue importing oil through the Druzhba pipeline. 

Hungary Doesn’t Just Stand Out on Energy

Hungary was broadcasting its image as Russia’s link to Europe before the invasion of Ukraine. In a much-criticized visit in January, on the eve of Russia’s February invasion, Orban and Russian President Vladimir Putin reportedly discussed energy deliveries, the production of Russia Sputnik V vaccine in Hungary, and the ongoing construction of a Russia-backed nuclear plant in Hungary. Even after Russia’s invasion, Budapest continued to defend its partnership with Russian state-owned nuclear energy company Rosatom to expand the Paks nuclear power plant. 

Orban arguably remains the staunchest critic of Western pressure campaigns to penalize Russia for its invasion of Ukraine. Speaking this month from Romania’s Transylvania, where he gives an annual nationalistic speech, Orban declared that the European Union’s sanctions on Russia have not worked, and that a new strategy that encouraged immediate peace talks would be preferable.

So long as Orban’s government in Budapest continues to place significant value in its relationship with Russia, full European unity of action and response will be difficult, if not impossible, to reach. While Central and Western European countries such as Germany continue to struggle with gas disruptions, Budapest will likely meet minimal pushback from its European neighbors as it continues to foster warm ties with Moscow.

Wesley Culp is a Research Fellow at the Center for the Study of the Presidency and Congress. He regularly writes on Russian and Eurasian leadership and national security topics and has been published in The Hill as well as in the Diplomatic Courier. He can be found on Twitter @WesleyJCulp.

Written By

Wesley Culp is a Research Fellow at the Center for the Study of the Presidency and Congress. He regularly writes on Russian and Eurasian leadership and national security topics and has been published in The Hill and the Diplomatic Courier. He can be found on Twitter @WesleyJCulp.