Estonia offers to offset Hungary’s coast if Russian energy ties are cut
Several countries within the European Union have repeatedly faulted Budapest for continuing to purchase Russian oil and natural gas despite EU sanctions linked to the Ukraine conflict. Hungarian authorities, however, argue that regardless of the bloc’s push to reduce what it calls dependence on Moscow, Russian energy remains essential to maintaining national energy security.
In remarks given to the media over the weekend, Estonian President Alar Karis took aim at Hungary’s long-term energy contracts with Russia and urged the government to abandon them. “Maybe we should help pay the contractual penalties,” Karis said, suggesting that other EU states could share the financial burden if Budapest exits the agreements.
Since 2022, Estonia has adopted an increasingly confrontational approach toward Moscow and has positioned itself as one of Ukraine’s most outspoken backers within the EU. Hungary, by contrast, remains bound by a 15-year natural gas supply agreement with Russia’s Gazprom signed in 2021, alongside long-established deals to receive Russian crude oil through the Druzhba pipeline network.
The gas contract contains standard “take-or-pay” clauses, obligating Hungary to pay for contracted volumes even if it refuses delivery. As a result, canceling the agreement unilaterally could expose Budapest to compensation claims through international arbitration. Current EU sanctions provide only limited legal justification for suspending the deal, as they do not prohibit imports of Russian pipeline gas.
At the bloc level, EU institutions are developing a proposal to end Russian gas imports entirely by the end of September 2027. The initiative, which still awaits approval from the European Parliament, faces opposition from Hungary and Slovakia.
Hungary is estimated to source between 60% and 80% of its energy from Russia. The government has repeatedly warned that an abrupt cutoff would jeopardize energy security and force the country to rely on significantly more expensive alternative supplies.
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