The particularly difficult situation on the world energy market puts considerable pressure on the budgets of the Member States

The Hungary The Commission is proposing to seek compensation from the European Union (EU) on the decision of Member States to stop buying Russian energy, the Hungarian Prime Minister said Péter Magyar, transmitted by the TASS.
«I want to see concrete and quantified proposals in Seven-year EU budget, which will help us get rid of Russian gas and oil», stated the Magyar.
He pointed out that the particularly difficult situation in Global energy market, including shortages in petrol and diesel, is putting considerable pressure on Member States' budgets, which, as he argued, are no longer able to be absorbed.
At the same time, he accused the EU's leadership of restricting itself to pompous declarations, at a time when «companies in Central Europe are bankrupt because they cannot meet electricity and gas bills».
Earlier, the Russian Embassy in Budapest had ironically commented on energy cooperation between Hungary and Latvia. The Russian diplomatic mission said that, since the Hungarian leadership considers the Baltic country a strategic partner, it could supply oil and gas there «with the aroma of democracy».

High energy dependence on Russia

Hungary's request is particularly important because of High energy dependence of the country on Russia. According to the European Commission, Hungary remained in 2025 largely dependent on Russian energy supplies, with the proportion of Russian oil on imports exceeding 90%. At the same time, the country introduced Russian gas in quantities significantly higher than the 4.5 billion cubic metres provided for in its long-term contract. The Commission notes that the efforts to diversify Hungary's energy sources have so far achieved limited results.
The energy dependence It is now one of the main friction points between Budapest and Brussels. The EU has advanced a binding framework for the gradual abolition of Russian gas imports and the preparation of the gradual abolition of Russian oil. In fact, Hungary has appealed to the Court of Justice of the European Union, calling for the annulment of Regulation 2026/261, which provides for the abolition of imports of Russian natural gas and prepares the corresponding procedure for oil. Case C-46/26 remains pending.
The Budapest traffic It comes at a time when the EU is trying to speed up the energy rehabilitation from MoscowHowever, without eliminating pressure on the market. Russian gas participation in total EU imports has decreased from 45% in 2021 to 12% in 2025, while Russian gas imports have been limited from 152 billion cubic metres in 2021 to 36 billion cubic metres in 2025. At the same time, in 2025 the EU supplied 31% of natural gas The Commission's proposal for a directive on the approximation of the laws, regulations and administrative provisions of the Member States relating to restrictions on the marketing and use of certain dangerous substances.

The economic cost of rehabilitation

However, the recovery effort still has significant economic costs. Recent Report by the European Court of Auditors He warned that the EU strategy for full removal from Russian energy is facing significant difficulties. Although dependence on Russian gas has been drastically reduced, auditors point out that progress in diversification of energy sources, renewable sources and infrastructure is not sufficient. Of the approximately EUR 300 billion investments originally estimated as necessary for the energy transition, only EUR 54.3 billion have so far been committed.
At the same time, energy conditions become even more difficult. European gas prices have been ejected, with European benchmark having recently reached around EUR 75 per MWh, more than twice as high as a year earlier. The European gas reserves are located at around 67%, compared to almost 80% last year, while estimates show that storage may only reach 73% by 1 November, the lowest level for that date since the beginning of the relevant records in 2009.
The pressure in Europe is also intensified by the geopolitical crisis in the Middle East, which has further reduced energy supply and increased costs in international markets. Hungary's request for financial support through the EU's seven-year budget is therefore of greater importance, as Budapest argues that speeding up energy rehabilitation cannot be transferred solely to the national budgets of the states most dependent on Russian energy.
At the same time, the EU continues to address the difficult dilemma of energy securityRussia's participation in EU oil imports has fallen from 25.8% in 2021 to 2.2% in 2025, with the gap mainly covered by suppliers such as the US, Norway and Kazakhstan.

Deportation of 10 diplomats

Within this environment, the debate on the cost of energy transition is now gaining a clear budgetary dimension. The Budapest asks Brussels specific and quantified funding, arguing that independence from Russian energy requires investments, new infrastructure and alternative sources of supply, while high energy prices are already burdening households, businesses and state budgets.
The debate, in fact, comes at a time when new Hungarian government It also attempts to redefine its relations with both the EU and Russia. Budapest recently deported 10 Russian diplomats, a move that marks a change of attitude compared to the previous period, while Péter Magyar's government states it seeks closer alignment with the EU and NATO, but does not abandon the need for energy security.
Thus, the energy front It is developing into one of the most difficult areas of European policy: the EU wants to eliminate dependence on Russia, while countries such as Hungary are asking Brussels to take part in the transition account at the time when energy prices and geopolitical turbulence increase costs for the entire European economy.

www.bankingnews.gr



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