The new study, conducted by the Center for Democratic Studies and the Center for Energy and Clean Air Research (CREA), shows that Hungary and Slovakia have many alternatives to Russian oil and gas but have refused to use them. Instead, both Hungary and Slovakia are using sanctions exemptions to increase their dependence on Russian fuel.
According to Politico, research shows that since the Russia-Ukraine conflict broke out, Hungary and Slovakia have spent 5.4 billion euros in taxes on Russia in terms of crude oil alone - enough to cover the costs of 1,800 Iskander-M missiles.
"There is no real sign that Hungary and Slovakia will separate from Russian crude oil, although the EU legal document states that this is the purpose of the exemption. Hungary has increased its dependence on Russian crude oil from 61% before the conflict to 86% by 2024, and Slovakia remains nearly 100% dependent on supplies from Moscow, the researchers pointed out.
This assessment was made at an important time for both countries, as the EU is preparing proposals to completely cut off all energy linkages with Russia. Hungary and Slovakia objected, saying the measure would increase energy prices for consumers and endanger the energy access of both countries.
On May 14, Hungary and Slovakia issued a joint statement expressing "serious concern" about the proposals, pointing out logistical obstacles as well as warning of "higher energy prices and stronger fluctuations".
However, research confirms that the above arguments of the two countries are unfounded. Both Hungary and Slovakia can import non-Russian oil from Croatia via the Adria gas pipeline. Hungarian energy company MOL is capable of filtering crude oil from another source. Abundant gas sources from countries such as the US and Qatar are available in the Central European market.
"Continuing to import Russian oil and gas to Hungary and Slovakia is not a result of technical or infrastructure limitations. This is the product of a network of intermediaries and deep-rooted deep-flowing Transaction structures, helping Russian companies maintain control over the Hungarian energy sector and make huge profits in the process," said Martin Vladimirov, Director of the Energy and Climate Program at the Center for Democratic Studies.
Both Hungary and Slovakia can still import Russian oil thanks to sanctions exemptions in 2022. This exception is to help landlocked countries have time to find alternative energy sources. However, instead of changing direction, Budapest and Bratislava are pushing to continue accessing fuel from Russia.
The issue is expected to become more tense in the coming months, after the European Commission announced it would propose a law to gradually ban gas contracts with Russia and require all member states to plan to end their dependence on Russian energy.
The two EU diplomats who are well aware of the plan have revealed that the European Commission will hold bilateral talks with Hungary and Slovakia to find a way to reduce the disagreement.
