Phoenix 24
Europe’s energy independence faces a difficult economic test.
BUDAPEST, Hungary. Hungarian energy company MOL is seeking European Union funding to reduce its dependence on Russian crude oil, warning that higher energy costs could generate social unrest and political instability in Hungary and Slovakia. The company expects to be technically capable of ending Russian oil imports by late 2027, but argues that additional pipeline infrastructure is essential to manage the transition.
György Bacsa, head of MOL Hungary and the group’s chief strategy officer, told Euronews that replacing Russian supplies could impose substantial financial pressure on both economies. His warning concerns a potential consequence of rising energy prices, rather than unrest that has already occurred.
Hungary and Slovakia remain heavily dependent on the Soviet-era Druzhba pipeline, even as the European Union reduces its reliance on Russian energy. According to the European Commission, Russia’s share of EU oil imports has fallen from 27% in 2021 to approximately 2%.
The economic challenge is significant. A 2025 International Monetary Fund study estimated that a complete interruption of Russian energy supplies could increase Hungary’s energy expenditure by around 15% by 2030.
MOL argues that Central and Eastern Europe lack the diversified pipeline networks available in Western Europe. Bacsa is therefore advocating a dedicated European financing programme to expand cross-border energy connections.
One priority is the Adria pipeline, which transports oil from Croatia toward Hungary. However, disagreements between MOL and Croatian pipeline operator JANAF over transportation capacity, transit charges and technical testing have complicated efforts to establish dependable alternatives.
MOL has requested European Commission mediation and is also examining connections to the Transalpine Pipeline, which runs from Italy toward Germany.
Brussels has not committed to financing the projects. European Commission representatives have emphasized that reducing Russian energy dependence remains the overriding objective, while leaving open the possibility of discussing infrastructure requirements.
The dispute exposes a difficult policy trade-off. Replacing Russian oil can strengthen energy security, but inadequate transportation infrastructure may increase costs for refineries, businesses and consumers during the transition.
It also raises questions about whether EU financing restrictions on fossil fuel infrastructure should accommodate projects designed specifically to diversify supply rather than expand long-term hydrocarbon consumption.
With Hungary’s government pursuing a different approach to European energy cooperation, MOL sees an opportunity to seek financial support that was not previously requested.
The company’s plans nevertheless remain contingent on infrastructure investment, regulatory decisions and agreements with neighboring countries.
For the European Union, the challenge extends beyond eliminating Russian imports. A successful transition must also ensure that countries with fewer alternative supply routes can maintain affordable and reliable energy without reinforcing existing strategic dependencies.
Beyond the Numbers, the Consequences.