Hungary is contemplating a suspension of electricity and natural gas deliveries to Ukraine, as tensions escalate over the halted operations of the Druzhba pipeline. Gergely Gulyas, Chief of Staff to Prime Minister Viktor Orban, indicated that such measures could be implemented if crude oil transit through the pipeline is not restored.
The ongoing dispute centers on the interruption of Russian oil shipments via the Druzhba pipeline, which is critical for two remaining EU refineries—one located in Hungary and another in Slovakia. The disruption began on January 27, following reports of drone damage to the pipeline infrastructure by Ukraine. This incident has prompted both Hungary and Slovakia to seek alternative sources for their refinery feedstock.
In response to the situation, Hungary has started to release its strategic oil reserves at the request of MOL, its national oil and gas company. Concurrently, Slovakia has authorized a loan of 250,000 tons from its emergency oil stocks. Both countries have accused Ukraine of intentionally delaying the resumption of pipeline operations for what they describe as political reasons. Additionally, they recently announced a suspension of diesel exports to Ukraine.
Gulyas emphasized that Hungary is working closely with Slovakia to evaluate further countermeasures, which may include cutting off electricity and gas supplies to Ukraine if oil transit does not resume. Slovak Prime Minister Robert Fico has echoed this sentiment, suggesting that emergency electricity support might also be halted. Current market data reveals that Hungary and Slovakia collectively account for approximately 68% of Ukraine’s electricity imports this month, with Hungary supplying about one-third of Ukraine’s gas imports. Ukrainian officials have denied any political motivations behind the delay in restarting the Druzhba flows.
On a broader European level, both Hungary and Slovakia have sought permission from the European Commission to import Russian crude via maritime routes despite existing EU sanctions. One potential alternative route being considered is through the JANAF pipeline in Croatia. Croatian authorities have indicated that while additional volumes could be transported through this corridor, such shipments must not involve Russian oil.
