Orban Secures Energy Supplies in Moscow Meeting with Putin

Hungarian Prime Minister Viktor Orban met with Russian President Vladimir Putin in Moscow on March 15, 2024, to ensure the security of Hungary’s energy supplies and discuss ongoing efforts to resolve the conflict in Ukraine. The meeting comes as Hungary grapples with the economic challenges following recent sanctions imposed by the United States on major Russian oil producers.

Hungary has traditionally relied heavily on Russian fossil fuels, and Orban had previously warned that without these imports, the Hungarian economy could face severe repercussions. The sanctions, which target Russia’s two largest oil producers, raised concerns about energy availability for Hungary, which is landlocked and has limited options for sourcing alternative supplies. Fortunately for Hungary, the Trump administration granted it a one-year exemption from the sanctions, citing the difficulties faced by Orban in securing energy from non-Russian sources.

In a social media post following the meeting, Orban stated, “We recently travelled to Washington to secure Hungary’s exemption from the American sanctions on Russian energy: we succeeded. Now we must take the next step, guaranteeing that deliveries to Hungary continue without interruption.” He emphasized the importance of ensuring that Hungary’s energy supply remains secure and affordable for the coming winter and beyond.

Energy Dependency and Regional Context

Despite the European Union’s broader efforts to reduce reliance on Russian energy imports in light of the ongoing war in Ukraine, Hungary, along with Slovakia and the Czech Republic, received exemptions from certain bans on Russian crude oil imports. This has allowed them additional time to decrease their dependence on Moscow. While the Czech Republic has successfully phased out Russian crude, Hungary’s reliance has grown. In 2024, approximately 86% of Hungary’s crude oil purchases came from Russia, up from 61% before the invasion. Currently, around 92% of Hungary’s crude oil imports are sourced from Russia.

Analysts have raised concerns regarding this trajectory. Isaac Levi, an analyst at the Centre for Research on Energy and Clean Air, criticized the US exemption as a “terrible and unnecessary mistake,” suggesting it could allow over €1 billion ($1.2 billion) to flow into the Kremlin’s war efforts. He pointed out that the Czech Republic, also landlocked, has managed to eliminate Russian oil imports entirely, achieving lower fuel prices than Hungary, thereby challenging the rationale behind the exemption granted to Hungary.

Discussions on Conflict Resolution and Future Meetings

During the meeting, Orban and Putin also touched upon US-led initiatives aimed at ending the war in Ukraine. Reports from Russian state media indicated that Putin did not dismiss the prospect of hosting a summit in Budapest with former US President Donald Trump. Although plans for a meeting between Putin and Trump had been discussed previously, they were postponed amid concerns about the effectiveness of such talks.

As Hungary continues to navigate its energy strategy, the outcomes of this recent meeting in Moscow could have significant implications for both its economy and the regional geopolitical landscape. The dependency on Russian energy, coupled with the complexities of international sanctions and diplomatic relations, presents a challenging scenario for Orban and his administration.