The Hungarian state does not want to give up Russian oil – here is why

There has been heated debate in the European Union about Hungary’s insistence to keep Russian oil coming to the country ever since the start of Russia’s war in Ukraine. The Orbán cabinet constantly tells the public that the reason is protecting Hungarian families, suggesting that without Russian oil, there would not be enough resources in the country. But is that really the truth?

According to experts asked by Index, the Hungarian government collects an excess profit tax on the margin between Russian oil and Brent oil. Thus, diversification is not important for the cabinet, as it would lose out on a lot of money. On top of that, it is also inconvenient and expensive for MOL, Hungary’s main oil and gas company, to change a “well-established strategy”.

The Czech Republic made up its mind

At the same time, while the Czech Republic is in the same exact situation geopolitically as well as regarding the country’s energy sector and energy demand as Hungary, Czechia has already taken determined steps to detach itself from Russian oil.

The Czech state-owned company Mero announced at the end of May that more than a year after the war, it was finally possible for them to divest from Russian oil. Mero is financing the expansion of the Transalpine oil pipeline, which will transport oil from the port of Trieste in Italy to central Europe, with USD 73 million. This will double the capacity of the pipeline from 2025, Index explains. Like Hungary, Czechia had also been supplied via the Druzhba pipeline: however, the EU member state has already let go of Russian gas.