Hungary’s heavy dependence on Russian gas, dating back to the Cold War era, has left the country politically and economically vulnerable. While neighboring countries have significantly reduced their dependence on Russian energy, Hungary has taken a different approach, maintaining high levels of imports despite growing evidence that Russian gas is not cheaper than Western alternatives.
Others recognized the problem in time
Hungary’s continued dependence on Russian gas is drawing growing criticism, especially as other Central European countries have managed to diversify their energy sources. Market and profitwhich has its roots in infrastructure developed during the Cold War, this dependence has exposed Hungary to economic and political risks. While the collapse of the Eastern Bloc left many countries grappling with similar challenges, most have since recognized and mitigated these vulnerabilities.
The Baltic states, for example, began cutting ties with Russia’s energy sector in 2014, following the annexation of Crimea. Slovakia also quickly reduced its imports of Russian gas by 44% in one year. In contrast, Hungary’s energy strategy remained heavily dependent on Russian imports, even though Poland and the Czech Republic almost entirely eliminated direct purchases after the outbreak of war in Ukraine in 2022.
Infrastructure development is essential
Countries that have shifted away from Russian gas have done so through infrastructure development, such as building LNG terminals, adopting renewable energy sources, and reducing energy-intensive industries. Hungary, on the other hand, has chosen a different path. The government initially justified this dependence by claiming that Russian gas was cheaper, an argument refuted since prices rose higher than those of Western alternatives.
Economic data reveals the consequences of Hungary’s choices. Between 2022 and 2024, countries like Poland, the Czech Republic and Slovakia, all of which reduced their dependence on Russian gas, recorded higher GDP growth rates than Hungary. This suggests that abandoning Russian gas need not hinder economic development.
Hungary’s access to necessary funds is limited
Transitioning to cleaner gas production in Hungary would require significant measures, including reducing energy-intensive industries like battery production, exemplified by the CATL plant in Debrecen, which consumes more electricity than the residential population total of his county. Additionally, large-scale investments in infrastructure and energy efficiency are essential.
The European Union’s REPower program supports such initiatives, but Hungary’s access to these funds is hampered by persistent conflicts over the rule of law. Without strong political will, Hungary’s dependence on Russian gas seems destined to persist, despite its economic disadvantages and the successful energy transitions of its neighbors.
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