Hungary wants Ukraine gas transit to resume as EU sanctions rollover looms

Hungary is urging the European Union to encourage Ukraine to restart gas transit from Russia to Europe, as stated by Prime Minister Viktor Orban on Friday. This request highlights the contentious discussions expected as the EU prepares to extend its sanctions against Russia in the upcoming week.

Hungary has yet to determine its position on the sanctions extension, which is scheduled for the end of this month. The EU’s sanctions are renewed biannually and require unanimous agreement from all 27 member states.

Orban, whose administration has fostered closer economic and political ties with Moscow compared to other EU nations, reiterated his opposition to the sanctions on Friday, claiming they have inflicted 19 billion euros ($19.9 billion) in financial losses on Hungary, although he did not specify the basis for this figure.

“Currently, the issue of sanction renewal is on the table, and I have urged EU leaders to recognize that this situation cannot persist,” Orban stated during a broadcast on state radio.

“It is unacceptable that we bear the consequences of supporting Ukraine while facing our own challenges,” he remarked, referencing Ukraine’s recent decision to halt Russian gas deliveries to Europe via the Druzhba pipeline.

“We request that they persuade Ukraine to resume gas transit,” Orban added, emphasizing that Budapest also seeks assurances that Ukraine will not disrupt Russian crude oil imports.

EU foreign ministers are scheduled to convene on Monday to discuss the sanctions extension, and Hungary’s foreign minister has indicated that a significant debate is anticipated, noting that Hungary will also consult with its U.S. allies in the coming days.

In December 2023, Orban delayed EU assistance to Ukraine for several weeks. While Western European nations have made strides in reducing their dependence on Russian energy, Hungary, being landlocked, relies on Russia for approximately 80% of its gas and the majority of its crude oil.

The gas supplied to Hungary is transported through the Turkstream pipeline via Serbia, and the country did not receive any gas from Ukraine in the previous year.

The European Union has frozen billions of euros in funding for Budapest due to worries that Orban has undermined democratic checks and balances.