Hungary has dropped its opposition to a proposed European Union-wide ban on liquified natural gas (LNG) from Russia, bringing the bloc's 19th sanctions package one step closer to reality as Brussels seeks a united front on raising the costs of Moscow's war against Ukraine.
Why It Matters
Landlocked Hungary and neighboring Slovakia remain the EU's top destinations for Russian fossil fuel, with imports totaling $450 million and $298 million in August, according to data compiled by the Finland-based Centre for Research on Energy and Clean Air.
Because EU sanctions require the support of all 27 members to proceed, both Budapest and Bratislava have used their leverage to secure an exemption, arguing that switching suppliers too quickly would jeopardize their economies.
The shift comes as Brussels and President Donald Trump—who pledged to end the war in Ukraine within 100 days of beginning his second term—put pressure on Russia as President Vladimir Putin rebuffs calls for a negotiated end to the conflict, now nearing its fourth year.
Newsweek reached out to the Hungarian and Russian foreign ministries and the White House for comment.
What To Know
The latest sanctions package, announced September 19, seeks to further restrict European revenues funding Russia's war chest.
In addition to closing the loophole on Russian LNG, the package would lower the oil price cap on Russian crude oil to $47.60, sanction over 100 additional vessels believed to be in the "shadow" fleet of sanctions-busting vessels, and implement full bans on business with Russian energy giants such as Gazprom and Rosneft.
For Budapest, the shift coincides with new efforts to diversify energy sources.
On October 2, state-owned MVM CEEnergy signed its longest-ever LNG contract—a decade-long deal with France’s Engie—to supply 400 million cubic meters of gas per year between 2028 and 2038, Hungarian media reported.
Foreign Minister Peter Szijjarto, who announced the Engie deal, called it “a pillar of energy security,” emphasizing that diversification “does not mean closing one route when another opens.” He stressed that energy independence “must remain a matter of national sovereignty.”
Meanwhile, Hungary is courting Turkmenistan as another potential source. Deputy Secretary of State for Eastern Affairs Adam Stifter said in an October 1 statement Turkmenistan is a "reliable partner" that Budapest hopes "will soon become a gas supplier to Europe—and, more precisely, to Hungary.”
Hungarian Prime Minister Viktor Orban, a right-wing populist and one of Trump’s closest allies in Europe, has long maintained that sanctions risk damaging Europe’s competitiveness more than Russia’s.
The central European country has increased its supply of Russian gas since the 2022 invasion of Ukraine, and is contracted to receive 4.5 billion cubic meters of gas per year from Russian majority state-owned gas company Gazprom until 2036.
Trump, who in recent months has increased pressure on Russia to end the war, said last month that he raised the issue of Russian oil imports with Orban, telling reporters he had "a feeling" the Hungarian prime minister might end oil imports if he asked.
After Hungary and Slovakia—which along with Austria remains opposed to certain provisions of the package—the next largest importers of Russian fossil fuels are France, the Netherlands, and Belgium.
What People Have Said
Ursula von der Leyen, president of the European Commission, said in a statement last month: "Russia's war economy is sustained by revenues from fossil fuels. We want to cut these revenues. So we are banning imports of Russian LNG into European markets. It is time to turn off the tap. We are prepared for this."
Francesco Sassi, a postdoctoral fellow at the University of Oslo’s Department of Political Science, wrote in an analysis that Hungary and Slovakia are “reinforcing mutual interdependency through gas infrastructures, creating a gas bloc in the heart of Europe aimed at hedging risks between the European Union, Russia, and the United States.”
What Happens Next
EU leaders aim to end the bloc’s dependence on Russian gas and oil through a phased cutoff—banning new contracts with Moscow beginning in January 2026, ending short-term deals by June of that year, and severing all long-term agreements by January 2028.
Russia now accounts for roughly 12 percent of EU gas imports, down from 45 percent before its February 2022 invasion. Whether these efforts will meaningfully curb Moscow’s energy revenues remains uncertain, as losses in European markets have been largely offset by growing sales to energy-hungry China and India.
