Hungary is buying Russian oil despite the availability of alternative sources of supply, according to a report by the Center for the Study of Democracy (CSD), cited by CNN. Hungarians’ savings are turning into profits for Hungary’s largest oil company, which is partly owned by foundations linked to Prime Minister Viktor Orbán.
According to the CID, domestic fuel prices in Hungary were on average 18% higher than in neighboring Czech Republic in 2025, even though Budapest still buys cheaper Russian oil while Prague buys more expensive non-Russian petroleum products.
The study undermines Orbán’s claims that continued purchases of Russian oil, despite European Union efforts to phase out Russian fossil fuels, are making fuel cheaper for Hungarians. The report says the lower prices are largely due to MOL, the Hungarian oil giant, whose operating income has increased by 30% since Russia’s full-scale invasion of Ukraine in 2022.
"The dependence on discounted Russian oil has not reached consumers," says Martin Vladimirov, director of the CED’s energy and climate program. He says the profits from the resale of cheap oil go into the pockets of monopoly supplier MOL in the form of super-profits that indirectly finance Orbán’s state-conquest networks.
Since Russia launched its full-scale invasion of Ukraine nearly four years ago, EU members have taken steps to end their dependence on Russian oil and gas. The EU granted Hungary, Slovakia and the Czech Republic a waiver, making it clear that they must reduce their dependence on Russia as soon as possible.
The Czech Republic has since stopped buying Russian oil, but Hungary and Slovakia have used the EU waiver to deepen their dependence. Last year, Russia accounted for more than 92% of Hungary’s crude oil imports, up from 61% before the invasion, the CID report said. When the United States announced sanctions on Russian oil giants Rosneft and Lukoil in October, Orban traveled to the White House to request a one-year waiver. U.S. President Donald Trump granted his request, saying it had been “difficult” for Hungary to give up Russian fossil fuels because it is landlocked.
According to the CID, Hungary’s continued purchases of Russian oil are a political choice, not a commercial or logistical necessity. "Despite full access to alternative supply routes, Hungary has deepened its dependence on Russian oil, turning the EU's temporary exemption into a permanent loophole in the sanctions regime," the organization's report states.
Hungary receives Russian crude oil via the Druzhba pipeline, which runs through Ukraine, but is also connected to the Adria pipeline, which runs through Croatia and pumps non-Russian crude oil from the Adriatic coast. The CID researchers note that the Adria pipeline has sufficient capacity to meet the needs of Hungary and Slovakia, and that its transit fees are 1.7 times lower than those for the Druzhba pipeline, which runs through an active war zone.
However, Russian crude oil is significantly cheaper than non-Russian alternatives. The report found that between January 2024 and August 2025, Russian crude oil was on average about 20% cheaper. But this discount did not translate into lower prices for Hungarian consumers, according to the report.
In 2025, average weekly fuel prices before taxes were 18% higher in Hungary than in the Czech Republic, and 10% higher for diesel, the CID reported. Although MOL bought Russian crude at a deep discount, the researchers say the company still sold its products at prices similar to other regional markets, which led to a sharp increase in its profits.
"The company's operating income increased by 30% above pre-invasion levels, while three foundations linked to Prime Minister Viktor Orbán control 30.49% of MOL, allowing excess profits to flow into some of the most influential state-conquest networks in Hungary," the report said. These foundations include the "Matthias Corvinus" College, Hungary's largest educational institution, which has close ties to Orbán's government.
The CSD report comes as Hungary prepares for parliamentary elections in April, in which Orban will face off against Péter Magyar, his first major opponent in years. Orban has campaigned heavily on how his government has managed to keep energy costs low, a claim the report questions. The report also undermines Orban’s claims that Hungary has no choice but to buy Russian oil. It finds that Hungarian refineries are technically capable of processing non-Russian crude and have done so in the past without interruption. The CSD also noted how Bulgaria and the Czech Republic, which stopped buying Russian oil after the invasion of Ukraine, “have not experienced supply disruptions and have maintained some of the lowest fuel prices in the EU.”
The researchers recommend that the EU adopt legislation proposed by the European Commission to ban imports of Russian crude from Hungary and Slovakia as soon as possible. The final stage of Europe's energy decoupling from Russia is within reach. What remains is the political will to close the loopholes that continue to fund the Kremlin's war machine, researchers believe.