EU Scream

Ep.120: Hungary’s Deepening Dependency on Russian Oil


Listen Later

Three years ago, as part of efforts to weaken Putin's war chest, the EU banned imports of Russian crude oil. But those countries with a high dependency on Russia were allowed to continue importing, the idea being they needed more time to adapt. Poland, Germany and the Czech Republic have since stopped. But not Slovakia, and not Hungary. Both still take deliveries of Russian crude through the Soviet-era Druzhba or "Brotherhood" pipeline. In this episode, Attila Steiner, the Hungarian State Secretary for Energy, acknowledges that his country is increasing, not decreasing, dependency on Russian crude, and that Hungary is expanding links with the Druzhba network. That's not how EU sanctions are supposed to work. It's also fundamentally at odds with the REPowerEU plan to stop all Russian oil imports by the end of 2027. The behavior of Hungary, which is facilitating Russian oil exports amid Putin's continued assault on Ukraine, shows contempt for Brussels and Kyiv. Moreover an alternative to Russian oil already exists in the form of the Adria pipeline that can deliver oil from suppliers like Kazakhstan via Croatia. But Steiner using the Adria is neither advantageous for Hungary nor for its giant energy conglomerate MOL. And, in any case, it looks like the pressure is off Hungary to quit Russian crude, at least for now. Steiner credits a recent diplomatic campaign by Prime Minister Viktor Orbán, first with Donald Trump, who is no longer calling on Hungary to change suppliers, and second, with former German Chancellor Angela Merkel, who effectively gave her blessing to continuing Russian crude imports. But that's unlikely to be the end of the story. There's domestic politics to consider too. Hungary imposes a tax on the profits that are partly generated from importing the relatively low-priced Russian crude. Yet prices at the petrol pump remain above the EU average, and that contributes to an already delicate political situation for Orbán's ruling Fidesz party, which is trailing in the polls ahead of elections next year. It's also a delicate situation for Steiner himself. He seems set to go head-to-head with Péter Magyar, the main opposition figure in Hungary who opposes Russian imports, in a forthcoming contest for a parliamentary seat in Budapest. That, Steiner says, will be "an interesting fight".

Support the show

...more
View all episodesView all episodes
Download on the App Store

EU ScreamBy EU Scream

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

20 ratings


More shows like EU Scream

View all
Inside Europe by DW

Inside Europe

183 Listeners

Pod Save the World by Crooked Media

Pod Save the World

24,624 Listeners

EU Confidential by POLITICO

EU Confidential

104 Listeners

The Europeans | European news, politics and culture by Katy Lee and Dominic Kraemer

The Europeans | European news, politics and culture

165 Listeners

Today in Focus by The Guardian

Today in Focus

987 Listeners

The Intelligence from The Economist by The Economist

The Intelligence from The Economist

2,549 Listeners

The Rachman Review by Financial Times

The Rachman Review

138 Listeners

Tech Won't Save Us by Paris Marx

Tech Won't Save Us

573 Listeners

The Ezra Klein Show by New York Times Opinion

The Ezra Klein Show

15,852 Listeners

Ones and Tooze by Foreign  Policy

Ones and Tooze

340 Listeners

The Rest Is Politics by Goalhanger

The Rest Is Politics

2,852 Listeners

The Foreign Affairs Interview by Foreign Affairs Magazine

The Foreign Affairs Interview

450 Listeners

The Rest Is Politics: Leading by Goalhanger

The Rest Is Politics: Leading

803 Listeners

Critics at Large | The New Yorker by The New Yorker

Critics at Large | The New Yorker

660 Listeners

The Rest Is Politics: US by Goalhanger

The Rest Is Politics: US

2,135 Listeners