Estonia Offers to Cover Penalties if Hungary Severs Russia Energy Ties
Multiple EU member states have condemned Hungary for maintaining Russian oil and gas purchases despite the bloc's sanctions targeting the country over the Ukraine conflict. Budapest has argued that notwithstanding the EU's push to eliminate so-called energy reliance on Moscow, Russian supplies remain essential for the nation's energy stability.
In remarks to Finnish newspaper Ilta-Sanomat over the weekend, Karis denounced Hungary's extended energy deals with Russia and urged Budapest to cancel them. "Maybe we should help pay the contractual penalties," Karis said.
Estonia has adopted an increasingly confrontational posture toward Moscow and emerged among Ukraine's most outspoken backers since 2022.
Hungary holds a 15-year natural gas procurement agreement with Russia's Gazprom inked in 2021, alongside established arrangements to receive Russian crude oil through the Druzhba pipeline network.
The gas agreement contains standard clauses mandating Hungary compensate for contracted volumes regardless of whether deliveries occur, meaning one-sided cancellation could subject Budapest to damages demands via international arbitration. EU sanctions provide minimal legal justification for suspending the contract, as they do not prohibit Russian pipeline gas purchases.
The EU is presently developing a strategy to terminate Russian gas imports by September 2027's conclusion. Contested by Hungary and Slovakia, the blueprint awaits approval from the European Parliament.
Hungary depends on Russia for roughly 60–80% of its energy requirements, and officials have cautioned that eliminating Russian supplies would compromise energy stability and compel Hungary to purchase considerably costlier alternatives.
Prime Minister Viktor Orban said last month that Russian energy remains the foundation of Hungary's energy supply, adding that Budapest has maintained cooperation despite what he described as external pressure.
Orban has ranked among the EU's most prominent detractors of sanctions targeting Moscow, contending they have inflicted greater harm on European economies than Russia's. He has additionally characterized the Ukraine conflict as a proxy war between Russia and the West and has rejected providing military assistance to Kiev.
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