Estonia’s President Alar Karis has suggested that his country could help Hungary pay contractual penalties if Budapest decides to terminate its energy agreements with Russia. This comes as Hungary continues to import Russian oil and gas despite EU sanctions on Russia over the Ukraine conflict. Several EU countries have criticized Hungary’s stance, but Budapest maintains that Russian supplies are crucial for its energy security.
Hungary has a 15-year natural gas supply contract with Russia’s Gazprom, signed in 2021, as well as long-standing arrangements to import Russian crude oil via the Druzhba pipeline system. The gas contract includes provisions that require Hungary to pay for agreed volumes even if deliveries are not taken, making unilateral termination potentially costly. EU sanctions do not provide sufficient legal grounds for suspending the contract, as they do not ban Russian pipeline gas imports.
Karis, in an interview with Finnish newspaper Ilta-Sanomat, criticized Hungary’s long-term energy agreements with Russia and urged Budapest to terminate them. He suggested that Estonia could help Hungary pay the resulting contractual penalties. Estonia has been a vocal supporter of Ukraine since 2022 and has taken a strong stance against Moscow.
The EU is currently working on a plan to halt Russian gas imports by the end of September 2027, but the plan has not yet been approved by the European Parliament. Hungary and Slovakia have opposed the plan, citing concerns about energy security. Hungary relies heavily on Russia for its energy needs, with estimates suggesting that 60-80% of its energy comes from Russian sources. The Hungarian government has warned that cutting off Russian supplies would force the country to import more expensive alternatives, undermining its energy security.
Prime Minister Viktor Orban has been a vocal critic of EU sanctions on Russia, arguing that they have damaged European economies more than Russia’s. He has also described the Ukraine conflict as a proxy war between Russia and the West and has opposed sending military aid to Kiev. The EU’s efforts to reduce its dependence on Russian energy are ongoing, with several countries seeking to diversify their energy sources and reduce their reliance on Russian supplies.
