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US presses Hungary to end reliance on Russian oil and gas

by EUToday Correspondents
US presses Hungary to end reliance on Russian oil and gas

The United States expects Hungary to set out and implement a plan to end its dependence on Russian oil and gas, the US ambassador to NATO has said.

Speaking on Fox News on 27 October, Matthew Whitaker said Washington was looking for “countries like Hungary, Slovakia and Turkey” to produce concrete roadmaps to wean themselves off Russian energy supplies. He added that the US would work with regional partners, including Croatia, to assist.

Mr Whitaker’s remarks follow a new US sanctions package announced last week targeting Russia’s two largest oil producers, Rosneft and Lukoil. The measures, imposed on 23 October, are among the most far-reaching US steps against Russian energy companies since the start of the full-scale war, and are aimed at constraining Moscow’s revenue. The Treasury Department confirmed the designations, which restrict access to US financial channels and can complicate global trade with the firms.

Hungary has long relied on crude delivered through the Soviet-era Druzhba pipeline and on supply arrangements involving Russia-linked companies. Prime Minister Viktor Orbán said on 24 October that his government was examining ways to circumvent the new US restrictions on Rosneft and Lukoil. Reuters reported that MOL Group, which operates refineries, is assessing the impact of the sanctions due to take effect in late November.

The ambassador’s intervention places a fresh spotlight on intra-alliance differences over energy policy. While EU sanctions have reduced seaborne Russian crude imports and introduced a price cap in coordination with G7 partners, pipeline deliveries to certain landlocked EU states have continued under exemptions. Mr Whitaker said Hungary, “unlike many of its neighbours, has not developed any plans or taken active steps”, adding that the US would continue to engage with Budapest and regional partners to facilitate alternatives.

Market reaction to the US measures has focused on enforcement and the response of major buyers outside the EU. Analysts note that the effectiveness of sanctions on Russian oil hinges on the compliance of third-country refiners and traders, and on maritime services such as shipping and insurance. Early commentary has questioned whether global purchases will materially decline, even as financing and logistics become more complex.

For Hungary and Slovakia, the practical challenge lies in crude grades and infrastructure. The refineries at Százhalombatta and Bratislava are optimised for blends historically supplied via Druzhba, and while both plants have invested in flexibility since 2022, full diversification requires additional technical work and assured non-Russian supply routes. MOL and its Slovak subsidiary Slovnaft have previously indicated that changes in feedstock can be managed over time but are not immediate. These considerations help explain Budapest’s emphasis on continuity while it assesses compliance options.

The US push sits within a wider effort to constrain Russia’s ability to finance its war against Ukraine. President Donald Trump has said Europe should fully end purchases of Russian fossil fuels, and the latest sanctions were accompanied by allied measures, including EU steps tightening controls on Russian energy-related revenues. Moscow has dismissed the pressure as ineffective. European governments, meanwhile, continue to balance energy security with sanctions objectives as they head into the winter period.

Mr Whitaker’s appointment as US permanent representative to NATO was confirmed by the Senate in April. Since taking office, he has pressed allies to increase defence spending and reduce exposure to Russian energy. His latest comments indicate Washington will pair diplomatic pressure with technical support to states still reliant on Russian supplies, drawing in neighbouring EU members to help with infrastructure and supply diversification.

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