Hungary is preparing to do something it avoided for over a decade: cut its dependence on Russian energy. Economy Minister Istvan Kapitany says the country can fully comply with EU rules requiring member states to stop Russian gas imports by October 2027, and that Budapest already has enough pipeline capacity to source gas from other markets at competitive rates.
Speaking to Hungarian outlet Telex, Kapitany said the country’s supply picture is falling into place faster than expected. The government is also reassessing the Russian-backed expansion of the Paks nuclear plant and negotiating with alternative suppliers to move away from Russian crude oil.
Why This Matters?
For 16 years under former Prime Minister Viktor Orban, Hungary took the opposite approach — deepening ties with Moscow for gas, oil, and nuclear energy even as the rest of the EU worked to cut Russian imports following the 2022 invasion of Ukraine. Orban had long argued that landlocked Hungary simply had no alternative. Critics disagreed, pointing to how the policy positioned Hungary as an outlier within the bloc, with Orban repeatedly blocking EU sanctions on Russia and resisting aid packages for Kyiv.
The tone out of Budapest is changing under Prime Minister Peter Magyar, whose government appears willing to reverse course on some of Orban’s signature energy decisions.
The Paks Nuclear Question
One of the biggest symbols of Hungary’s Russia alignment was the 2014 decision to hand the Paks nuclear plant expansion to Russia’s Rosatom without a competitive tender. That project — already running years behind schedule — is now under formal review. A decision on whether to proceed at all is expected by the end of 2026.
Kapitany noted that newer technology could allow Hungary to extend the life of its existing four nuclear reactors by another two decades beyond their scheduled 2032 shutdown, which may reduce the urgency for new capacity altogether. He described the review process as “open-minded and totally objective.”
A Broader Energy Reset
Beyond gas and nuclear, Hungary is looking to cut its overall energy import dependence — particularly electricity — by expanding storage capacity and opening the door to large-scale wind power investment.
Energy import reliance has been a persistent weak point for the Hungarian economy, with global oil and gas price swings routinely hitting the forint. That vulnerability was on display again this week as the currency moved on uncertainty tied to the Middle East crisis and its potential effect on energy supply.
Bottom Line: If Hungary follows through, it would mark one of the most significant energy-policy reversals among EU member states since the war in Ukraine began — and a clear signal that Budapest is recalibrating its relationship with Moscow.
