Hungary Creates Rift With EU And Ukraine Over Russian Energy Sanctions

Last week, the Trump Administration announced that the U.S. would temporarily ease sanctions on Russian oil in response to volatile energy markets following the war in Iran. The decision drew criticism from Canada, members of the European Union, and Ukraine, which argued that easing sanctions would benefit the Russian Federation amid the ongoing war in Ukraine. In response, Hungary called on the EU to lift sanctions on Russian energy.

Hungary’s position on Russia’s energy market has sparked a rift within the EU. In response to Hungary’s request to ease sanctions on Russian oil, EU Commissioner for Energy and Housing Dan Jørgensen said that the EU would not “give in to pressure to re-engage with Russia to offset surging energy prices triggered by the war in Iran.” He restated that the EU had previously agreed to phase out Russian energy imports, and he stressed that it was important for the Europeans to uphold this agreement. He added that reverting Europe’s stance on Russian energy imports would “help indirectly finance Russia’s brutal, illegal war [in Ukraine].”

Other European leaders have supported Jørgensen’s stance. German Chancellor Friedrich Merz argued that easing sanctions on Russian energy “would be wrong.” Similarly, European Council President António Costa said that easing EU sanctions on Russian energy would “enable Russia to increase its revenue,” which would allow Russia to purchase weapons and defense equipment used in its ongoing invasion of Ukraine. Finally, European Commission President Ursula von der Leyen and French President Emmanuel Macron both noted that restrictive measures on Russian energy should remain in place.

Ukrainian President Volodymyr Zelenskyy also pushed back against Hungary’s request to the EU to ease sanctions on Russian oil. When asked about European access to Russian oil, Zelenskyy stated that “while Russia continues to wage war against Ukraine, he has no interest in facilitating Russian oil deliveries.” Additionally, throughout Russia’s full-scale invasion of Ukraine since February 2022, the Russians have targeted Ukraine’s energy infrastructure. These attacks have impacted European energy markets, particularly as the Russian Federation has curtailed gas supplies to Europe (although the Europeans have also enacted policies to reduce their dependence on Russian energy). As a result, European countries and Ukraine have sought to diversify their energy supplies. Hungary, however, remains persistent that access to Russian energy is essential, deepening tensions with its EU partners.

This is not the first time Hungary and Hungarian Prime Minister Viktor Orbán have created a rift with the EU as well as Ukraine. Since Russia’s full-scale invasion of Ukraine in February 2022, the Hungarian government has continuously blocked EU efforts to send defense, humanitarian, and financial assistance to Ukraine. For example, in December 2022, Hungary vetoed a €18 billion EU aid package for Ukraine, delaying critical EU assistance to the Eastern European country. Then, in December 2023, Hungary opposed a €50 billion EU financial aid package for Ukraine, arguing that the EU should prioritize member states over providing large-scale assistance to Ukraine. The veto on the €50 billion in assistance to Ukraine was eventually lifted in February 2024 after negotiations between the EU and Hungary.

Most recently, on March 16, Hungary announced that it would block a new €90 billion loan to Ukraine. The Hungarians said they would not lift their veto on the EU aid package for Ukraine until the Ukrainians restore the Druzhba pipeline, which transports Russian oil from Russia to Central and Eastern Europe via Ukraine. (The Slovaks have also criticized Ukraine for delayed shipments of Russian oil through the Druzhba pipeline.)

Aside from these EU assistance roadblocks for Ukraine, Orbán has also previously defied the EU’s diplomatic policies toward Russia by meeting with Russian President Vladimir Putin. The two leaders met in China in 2023 and then in Russia in 2024 and 2025. During their gatherings, Orbán and Putin have discussed Hungarian-Russian energy relations as well as Russia’s invasion of Ukraine. These meetings were criticized by members of the EU, who argued that Orbán had met with Putin outside the EU’s jurisdiction.

In short, the EU and Ukraine are now at an impasse with Hungary. As the war in Iran continues, oil prices will keep rising, putting financial pressure on consumers. In response, the United States and Hungary have called for easing sanctions on Russian oil, arguing that this would alleviate rising energy prices. Members of the EU and Ukraine, however, have argued that easing restrictions on Russian energy would benefit Russia, as revenue from energy sales would help the Russian Federation purchase weapons and defense equipment used in its ongoing full-scale invasion of Ukraine. Similarly, several European leaders have stated that lifting restrictions on Russian energy would see them indirectly responsible for financing Russia’s war in Ukraine.

It is unclear how the EU will work with Hungary to resolve these energy issues. No matter how these discussions evolve, their impact will have significant implications for European energy security policy, EU cohesion, and Russia’s ongoing invasion of Ukraine. How the EU officials and Orbán navigate these talks in the coming days will be closely watched by energy experts, EU political observers, and Ukrainian officials.