Hungary’s MOL seeks EU funding as CEO warns Russian oil phase-out could trigger social unrest
MOL says it could phase out Russian oil imports by the end of 2027, but chief Bacsa warns that higher energy costs could fuel political instability in Hungary and Slovakia. He is calling for EU funding to expand alternative pipeline routes, as Brussels keeps focus on quitting Russian energy.
Hungarian oil and gas company MOL claims it will be prepared to stop importing Russian oil by the end of 2027, urging the EU to provide more funding for the transition away from Russian energy sources. MOL Hungary's CEO, György Bacsa, warned that reducing Hungary's dependence on Russian crude could lead to higher energy costs, social unrest, and political instability in Hungary and Slovakia, both of which are heavily reliant on Russian oil.
With a new government in Budapest, MOL is seeking EU funding for the first time to support energy diversification. The shift represents a departure from the Viktor Orbán era, when Hungary remained heavily dependent on Russian oil and declined to participate in certain EU energy initiatives. A 2025 IMF study suggests that a complete cutoff of Russian energy supplies could increase Hungary's energy spending by approximately 15% by 2030, further straining its energy security.
The European Commission reports that Russia's share of EU oil imports has dropped from 27% in 2021 to just 2%, with Hungary and Slovakia remaining the only EU countries importing significant volumes of Russian crude through the Druzhba pipeline. Petrol and diesel prices in Hungary have surged this year, leading to criticism from opposition parties.
Bacsa, who also serves as chief strategic officer for MOL, stated that Russia's pricing is undisclosed. Bacsa emphasized that MOL complies with EU rules and sanctions, remaining committed to diversifying its energy supplies. However, restrictions on fossil fuel projects hinder MOL's ability to receive EU funding to expand its pipeline network, slowing down Hungary's energy diversification efforts.
MOL advocates for a targeted European program to address the infrastructural disparities between Central and Eastern Europe and Western Europe regarding pipeline infrastructure. The Adria pipeline, which connects Croatia to Hungary, could serve as an alternative to the Druzhba route. However, disputes between MOL and Croatia's state-owned pipeline operator JANAF over capacity testing and transit fees have impeded progress.
MOL also expresses interest in connecting Hungary to the TAL pipeline, which runs from Trieste to Germany, and the restart of the Druzhba pipeline from Brody to Odesa in Ukraine. Political tensions between Kyiv and Budapest over the pipeline have escalated after it became inoperable.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
