Hungary’s incoming economy and energy minister, István Kapitány, has declared that Budapest will not abandon Russian energy imports, delivering one of the clearest signs yet that the country’s new leadership intends to preserve strategic ties with Moscow despite growing pressure from Brussels.
Appearing before Hungary’s parliamentary committee on economics and energy on Monday, Kapitány said Hungary would continue relying on Russian energy while gradually diversifying supply routes. His comments immediately positioned energy policy as a potential flashpoint between Budapest and the European Union, which has intensified efforts to permanently phase out Russian oil and gas imports.
“Hungary is not abandoning Russian energy, but is diversifying its sources of supply,” Kapitány said during the hearing, according to remarks carried by Hungary’s MTI state news agency and later confirmed in Reuters reporting.
The ministerial nominee also pledged to maintain Hungary’s politically sensitive utility price cap program, which has long been a centerpiece of government policy aimed at shielding households from soaring energy costs.
Budapest Defends Russian Oil Supplies
Kapitány said Hungary intends to maximize the use of both the Druzhba pipeline dispute route and the Adriatic JANAF pipeline in order to secure stable energy imports at competitive prices.
The statement reflects the reality that Hungary remains deeply dependent on Russian crude oil despite four years of Western sanctions and repeated EU sanctions on Russian energy.
Hungary and neighboring Slovakia are now among the only EU states still importing significant volumes of Russian pipeline oil. Both countries have repeatedly argued that their refineries and infrastructure were historically designed around Russian supplies and cannot quickly transition without severe economic consequences.
Budapest has consistently resisted EU pressure for a full embargo on Russian energy, warning that rapid decoupling would raise fuel costs, destabilize supply chains, and damage Central European economies.
Kapitány’s remarks suggest the incoming Hungarian government, led by Prime Minister Péter Magyar, may soften rhetoric toward Brussels while maintaining many of the country’s core strategic energy priorities.
Europe’s Russian Energy Divide Deepens
The comments arrive at a time when the EU is preparing more aggressive measures aimed at locking in a permanent ban on Russian energy imports.
According to Reuters, the European Commission has explored legal mechanisms to prevent future Russian oil imports even in the event of a settlement in Ukraine. Hungary and Slovakia have emerged as the strongest opponents of those proposals.
The dispute intensified earlier this year after EU pressure over Russian oil transit triggered a major regional energy crisis involving Hungary, Slovakia, and Ukraine.
Pipeline flows were suspended for weeks after infrastructure damage linked to fighting near Ukraine’s Brody hub. Hungary accused Kyiv of delaying repairs for political reasons and threatened retaliatory economic measures, including blocking EU sanctions and limiting energy exports to Ukraine.
The standoff highlighted how Russian energy continues to shape political calculations across Central Europe even after years of sanctions.
Hungary’s New Government Balances Brussels and Moscow
Prime Minister Péter Magyar, whose Tisza Party defeated Viktor Orbán’s long-ruling government in April elections, has promised to rebuild relations with Brussels and improve transparency in public administration.
But energy policy appears likely to remain an area of continuity rather than rupture.
Kapitány, a former senior Shell executive, acknowledged during Monday’s hearing that Hungary’s reliance on Russian oil had become excessive. Reports indicate Russian imports rose from roughly 65 percent to nearly 90 percent of Hungary’s crude supply between 2022 and 2025.
At the same time, he argued that energy procurement “cannot be a political decision,” emphasizing that Hungary must prioritize affordability and supply security.
The incoming minister’s position reflects a broader debate unfolding across Europe, where governments continue struggling to balance geopolitical alignment with economic realities.
For Hungary, cheap Russian oil remains central to maintaining low household utility costs and industrial competitiveness.
Paks Nuclear Project Faces Scrutiny
While defending continued cooperation with Russia on oil and gas, Kapitány also signaled that the government would review the controversial Paks nuclear project, a multibillion-euro expansion led by Russia’s state nuclear giant Rosatom.
The Paks II project, first awarded in 2014 without a public tender under Viktor Orbán’s administration, has long symbolized Budapest’s close ties with Moscow.
Analysts say the reassessment may focus more on financing transparency than on canceling Russian participation altogether.
Central Europe’s Strategic Reality
Hungary’s stance increasingly reflects a broader trend across parts of Central Europe, where governments remain wary of fully severing economic ties with Russia despite pressure from Brussels and Washington.
Slovakia has similarly defended continued Russian oil and gas imports. During a meeting in Moscow last week, Russian President Vladimir Putin assured Slovak Prime Minister Robert Fico that Russia would continue meeting Slovakia’s energy needs, according to Reuters.
The continuing reliance on Russian pipelines underscores the limitations of Europe’s energy transition strategy, particularly for landlocked economies with Soviet-era infrastructure.
While Western European states have diversified through LNG terminals and alternative suppliers, countries such as Hungary and Slovakia argue that replacing Russian energy completely would require years of infrastructure investment and significantly higher costs for consumers.
For now, Budapest appears determined to resist efforts to force a rapid break with Moscow.
Kapitány’s remarks leave little doubt that Hungary’s new government, despite promises of closer ties with the EU, still views Russian energy as indispensable to the country’s economic stability and national strategy.
—Inputs from Sputnik.
