Hungary is seeking an exceptional exemption from U.S. sanctions to continue importing oil and natural gas from Russia. On October 30, 2025, the government of Prime Minister Viktor Orbán introduced a draft law outlining measures to be taken in case of a fuel supply emergency, following a major fire at the country’s Danube refinery and Washington’s new sanctions on Russian energy firms. Orbán said fuel supplies remain stable, though MOL Nyrt., Hungary’s main refiner, has not disclosed how the explosion affected production. The prime minister confirmed he will meet President Donald Trump at the White House on November 7 to request an exemption from sanctions targeting Russian energy companies, allowing Hungary to maintain purchases from Moscow.
Fire at Hungary’s Only Major Refinery
The fire broke out on the night of October 21 at Hungary’s only major refinery in Százhalombatta, which mainly processes Russian crude. Orbán said the cause of the blaze is under investigation and did not rule out external interference. He received a detailed report from the interior minister and stated that authorities are exploring whether the incident was an accident, technical fault, or possible attack.
Heavy Reliance on Russian Energy
Hungary remains one of the most dependent EU members on Russian energy. In 2024, it imported 74% of its natural gas and 86% of its crude oil from Russia, among the highest rates in the bloc. Supply routes include the TurkStream pipeline via Serbia and the Adria oil pipeline through Croatia. This reliance has drawn criticism from Washington and Brussels, which urge Budapest to align with Western sanctions policies and diversify its energy sources.
Economic and Political Tensions
According to IMF estimates, the EU’s gradual phase-out of Russian energy could cost Hungary over 4% of its GDP due to limited diversification. U.S. officials, including Ambassador to NATO Matthew Whitaker, have voiced frustration that Budapest has made “no active steps” toward reducing its dependence. Hungary’s stance continues to strain relations within the EU, as most member states accelerate efforts to end reliance on Russian hydrocarbons.
Nuclear and Renewable Alternatives
Hungary’s Paks nuclear power plant generates more than 40% of the country’s electricity. While the planned “Paks II” expansion was initially to be built by Russia’s Rosatom, the government recently announced plans to involve French and South Korean firms to reduce nuclear dependence on Russia. Budapest is also expanding solar energy capacity, aiming to reach 6 GW by 2030, and investing in gas interconnectors with Austria, Slovakia, and Croatia to access LNG terminals and non-Russian sources.
