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Hungary and Slovakia resist EU push to cut Russian energy

Pablo Gutierrez in Budapest

03:30

The European Union plans to stop all Russian oil and gas imports by January 2027. Brussels says the move will strengthen energy independence and competitiveness, while pressuring Moscow over the conflict in Ukraine.

But Hungary and Slovakia warn that moving too fast could cripple their economies and raise household bills.

Across the bloc, reliance on Russian energy has dropped to 13 percent since the Ukraine conflict began. Yet most of the gas used to heat Hungarian homes – and the oil in Slovak cars – still comes from Russia.

A study by the Centre for Research on Energy and Clean Air and the Centre for the Study of Democracy found the two countries have spent more than $36 billion on Russian supplies since the conflict began.

Energy researcher András György Deák said breaking that link may not be as costly as leaders claim.

"It would cost half a percent of Hungarian GDP to diversify fully away from Russia. That's about one billion dollars. Substantial, but not prohibitive," Deák said.

He argues the infrastructure is in place to import alternatives. What is missing, he said, is political will.

 

Delayed diversification

Economist Bod Péter Ákos said the two governments failed to act earlier.

"We have only two countries, I would say lazy countries, because they knew perfectly well three years ago that buying Russian oil and gas and other sources is risky," he said.

Others warn that the challenge is larger.

"Eighty percent of Hungary's crude still comes through the Druzhba pipeline," said Sándor Seremet of the Hungarian Institute of International Affairs. 

"In Slovakia, it's around 100 percent and it takes some time to do that diversification. This is a huge problem, and we don't have the infrastructure to replace it."

When it comes to gas, some analysts see fewer obstacles.

"We predict that there would be a one- or two-euro price increase. We cannot say it's tremendous or a huge impact for Hungary in terms of prices," said Borbála Tóth of the Regional Centre for Energy Policy Research.

Brussels insists the bloc can meet its 2027 target. Officials in Budapest and Bratislava say more time is essential.

Slovak Foreign Minister Juraj Blanár insists his country cannot afford a rushed transition.

"We don't have any other options which could be sustainable and also for the price to be reasonable," he said.

Pressure is also rising from Washington.

"You know, they have one pipeline coming because I spoke with him (Hungarian Prime Minister Viktor Orban), he's a great guy. He's a great friend of mine. But, you know, that's hard to work for them. And Slovakia, too, they're sort of married to one pipeline," U.S. President Donald Trump said.

Russia has accused Trump of trying to push countries toward what it calls "expensive American oil and gas."

For now, Hungary and Slovakia remain caught between Moscow's pipelines, Brussels' deadlines and Washington's demands – still buying Russian energy while searching for options.

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