Hungarian energy group MOL has said it will be technically ready to stop importing Russian crude by the end of 2027, but its leadership is warning that the transition could carry a heavy price. In an interview with Euronews, MOL Hungary's chief executive, György Bacsa, cautioned that reducing reliance on Russian oil would push up energy costs, potentially triggering social unrest and political instability in Hungary and neighbouring Slovakia, both of which still depend heavily on the Druzhba pipeline.
Bacsa, who also serves as the group's chief strategic officer, stressed that the company complies with all EU sanctions and remains committed to diversifying its energy sources. But he argued that the current crisis has changed the calculus. “In the current crisis, this is no longer a marginal issue where you are simply willing to pay 10 or 20 per cent more for green or non-Russian energy,” he said.
A new approach in Budapest
The push for EU funding marks a notable departure from the era of former Prime Minister Viktor Orbán, under which Hungary maintained close energy ties with Moscow and opted out of several EU-wide initiatives. With a new government in place, MOL is now seeking Brussels' support for the first time to finance energy diversification projects.
According to a 2025 study by the International Monetary Fund, a complete halt of Russian energy supplies could raise Hungary's energy spending by around 15% by 2030, adding further strain to its energy security. The European Commission has noted that Russia's share of EU oil imports has fallen sharply, from 27% in 2021 to just 2% today. Hungary and Slovakia remain the only EU members importing significant volumes of Russian crude via the Soviet-era pipeline.
In Hungary, petrol and diesel prices have already climbed sharply this year, drawing criticism from opposition parties. Bacsa warned that the economic impact could spill over into the political sphere. “This could really set back those economies, which could result in a political crisis, and the consequences of the political crisis would be unpredictable and could potentially have repercussions on the entire European policy,” he said.
Pipeline bottlenecks and EU funding
Bacsa said that current EU restrictions on fossil fuel projects prevent MOL from accessing funding to expand the pipeline network needed to diversify supplies. Central and Eastern Europe, he argued, lags behind Western Europe in pipeline infrastructure. “This disadvantage, this inequality, has to be addressed somewhere. I am in favour of a targeted European programme with targeted European resources for the infrastructural connection of all gas, electricity, and oil and petroleum products.”
A spokesperson for the European Commission, Timo Itkonen, did not rule out discussing fossil fuel infrastructure projects but stressed that reducing dependence on Russian energy remains the priority. “I do not have a response off the cuff whether we would have funding or what the options would be. But our priority is that our member states do have diversified energy policies so that they would not be receiving oil, gas and LNG from Russia,” he said.
A key element of MOL's diversification strategy is the Adria pipeline, which runs from Croatia to Hungary and could offer an alternative to the Druzhba route. However, MOL and Croatia's state-owned pipeline operator JANAF have been locked in disputes for years over transport capacity, transit fees, and the transportation of Russian crude to Hungary and Slovakia. MOL has asked the European Commission to mediate a disagreement over capacity testing on the Croatian section of the pipeline.
“The question of whether the Janaf test will now clear the hurdle is a very important one for us,” Bacsa said. “But even then, we should not give up on our goal of being at the centre of several diversified pipeline systems, rather than being at the end of a single pipeline. Janaf's earlier decision not to carry out the testing created a specific problem for us.”
Bacsa declined to provide further details on Russian oil pricing. Urals crude currently trades at around $60 a barrel, roughly 34% below Brent, reflecting the discount that Moscow offers to buyers. The company's push for EU support comes as Brussels continues to tighten the screws on Russian energy imports, with Arctic LNG imports still flowing ahead of a looming ban.
For MOL, the stakes are high. The company's ability to secure EU funding and resolve the JANAF dispute will determine whether it can truly diversify away from Russian oil without destabilising the region. As Bacsa put it, the goal is to be “at the centre of several diversified pipeline systems” rather than at the end of a single one. Whether Brussels is willing to foot the bill remains an open question.
