Hungary's MOL seeks EU funding to phase out Russian oil imports

Hungary’s MOL is seeking EU funding and warning of the risks of abandoning Russian oil

The Hungarian oil and gas company MOL states that by the end of 2027 it will be technically ready to phase out imports of Russian oil and is calling for increased EU funding to support the transition away from Russian energy resources.

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In an interview with Euronews, György Bácsó, CEO of MOL Hungary, warned that reducing Hungary’s dependence on Russian oil could lead to rising energy costs, trigger social unrest and fuel political instability in Hungary and Slovakia, which remain heavily dependent on Russian oil.

With the arrival of a new government in Budapest, MOL intends, for the first time, to seek EU funding to diversify its energy sector. This move marks a departure from the Viktor Orbán era, when Hungary maintained a high level of dependence on Russian oil and refused to participate in some EU energy initiatives.

According to a 2025 IMF study, a complete cut-off of Russian energy supplies could increase Hungary’s energy costs by approximately 15 per cent by 2030, placing additional pressure on its energy security.

The European Commission states that Russia’s share of EU oil imports has fallen from 27 per cent in 2021 to just 2 per cent. Hungary and Slovakia remain the only EU countries importing significant volumes of Russian oil via the Soviet-era ‘Druzhba’ pipeline.

In Hungary, petrol and diesel prices have risen sharply this year, drawing criticism from opposition parties.

MOL is seeking EU funding to expand its pipeline network

Bacho stated that restrictions on fossil fuel projects are preventing MOL from securing EU funding to expand the pipeline network needed to diversify supplies and strengthen energy security.

According to him, Central and Eastern Europe lag behind Western Europe in the development of pipeline infrastructure.

“This disparity must be addressed. I am in favour of a dedicated European programme with targeted European resources to interconnect all gas, electricity, oil and petroleum product networks.”

The European Commission spokesperson did not rule out discussions on fossil fuel infrastructure projects, but emphasised that reducing Europe’s dependence on Russian energy resources remains a priority.

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