Hungary would officially initiate the removal of a recommendation to phase out Russian energy imports from the agenda of a meeting of European Union energy ministers on June 16, in light of the situation in the Middle East.

In a Facebook post published on Sunday, June 15, Prime Minister Viktor Orban said the ongoing war in the Middle East had created a new geopolitical and economic situation that demanded immediate action.

Hungary would also call for a Europe-wide impact assessment on the consequences of the Middle East conflict and propose coordinated measures to mitigate related risks.

He noted that global markets had already begun pricing in the effects of the war, citing a 10% rise in oil and a 6% increase in gas prices.

"The short-sighted sanctions policy of Brussels is now plain to see," Orban said, adding that energy-poor and energy-intensive economies, such as the EU and Hungary, are particularly vulnerable.

"If energy sources in the Middle East are also put at risk, the European economy could be brought to its knees," he warned.

Orban criticised Brussels’ recent push to bypass member states’ veto powers in sanctioning Russian energy, calling it a violation of both the spirit and letter of the EU Treaties and an infringement on Hungary’s rights.

Since the Russian invasion of Ukraine, Hungary has repeatedly rejected proposals to extend EU sanctions to the Russian energy sector. The government, citing energy security concerns, negotiated several exemptions in previous sanctions rounds, most notably securing continued access to Russian pipeline oil and nuclear technology for the Paks 2 expansion project.

The cabinet has argued that sanctions targeting energy imports disproportionately harm landlocked Central European countries with limited alternative supply routes. Hungarian officials have consistently framed their opposition as a defence of national interests and regional economic stability.

Despite calls by the EU, Hungary has done little to reduce its dependence on Russian energy imports over the last three years. 

CEE’s leading energy group, MOL, currently sources around 75-80% of its crude oil from Russia via the Friendship (Druzhba) pipeline, which feeds its refineries near Budapest and Bratislava. Alternatives, such as the Adriatic pipeline, would significantly raise sourcing costs due to higher tariffs and the Brent-Ural price spread, chairman-CEO Zsolt Hernadi warned in an earlier interview.  Disconnecting from Russian oil would cost Hungary an additional $500mn-600mn annually, he added.

Foreign Minister Peter Szijjarto, speaking to state media on Sunday, stressed that Budapest would oppose what he referred to as the "Von der Leyen-Zelenskiy plan", which he claimed aims to impose sweeping bans on Russian oil, gas and nuclear fuel. He said such measures would lead to drastic increases in utility prices in Hungary and throughout the region.

He argued that Hungary's energy supply cannot be guaranteed without Russian resources, noting that oil, gas and nuclear fuel imports from Russia remain essential. "If Russian energy were cut off, we would face brutal price increases and a collapse in supply security," he said.