Hungary escalates energy feud: halts diesel exports to Ukraine amid Druzhba pipeline standoff

Hungary has suspended diesel fuel deliveries to Ukraine in retaliation for the ongoing disruption of Russian oil supplies through the Druzhba pipeline, a move announced by Foreign Minister Péter Szijjártó on Wednesday, following a government cabinet meeting.

This tit-for-tat escalation intensifies the energy tensions between the two nations, with Slovakia’s Slovnaft refinery – majority-owned by Hungary’s MOL Group – also halting its diesel exports to Ukraine and other foreign markets.

The decision underscores Budapest’s frustration over what it calls “political blackmail” by Kyiv, despite Ukraine attributing the pipeline’s inactivity to damage from a Russian airstrike on 27 January.

The Druzhba pipeline, a Soviet-era conduit that has supplied Russian crude to Central Europe since the 1960s, remains offline, forcing Hungary and Slovakia to dip into their 90-day strategic reserves to maintain supply stability.

Szijjártó emphasized that all technical, physical, and logistical conditions for resuming oil flows are in place, accusing Ukraine of deliberately withholding transit to pressure Hungary on issues like EU membership vetoes and military aid.

Prime Minister Viktor Orbán echoed this, labelling the halt as an attempt by Kyiv and Brussels to coerce Hungary into a “pro-war” European stance.

Ukraine, however, maintains that the disruption stems from Russian military action, with Foreign Minister Dmytro Kuleba urging complaints to be directed at Moscow.

On 13 February Ukrainian operator Ukrtransnafta has reportedly confirmed technical readiness to restart flows, but management has not authorized it amid the dispute.

The European Commission is engaging with Kyiv on a repair timeline, stating there is no short-term risk to EU oil supplies overall.

The diesel halt could strain Ukraine’s energy security, where imports from Hungary play a key role alongside gas and electricity.

However, Kyiv has alternatives via Poland, Romania, and Black Sea ports. Analysts suggest the move may backfire on Hungary, potentially costing revenue without significantly pressuring Ukraine.

Croatia sticks to its guns

In response to the pipeline issue, Hungary and Slovakia appealed to Croatia on 15 February to transport Russian oil via the Adria pipeline, citing an EU sanctions exemption for seaborne imports during disruptions.

But Croatian Economy Minister Ante Šušnjar rebuffed the request for Russian-sourced crude, adhering to EU and U.S. OFAC regulations, though offering assistance for non-Russian alternatives.

Croatia’s refusal to transport Russian oil: a blow to Hungary and Slovakia amid energy tensions

Critics note that Adria could meet needs at comparable or lower costs with non-Russian oil, but Hungary’s heavy reliance on discounted Russian crude – over 90% of imports by 2025 – has delayed diversification.

Meanwhile, MOL has signed initial contracts for seaborne Russian oil via Croatia as a workaround.

Adding to the complexity, the European Commission has confirmed that Hungary and Slovakia may invoke a temporary exemption under EU sanctions to import Russian oil by sea, including via Croatia, until the Druzhba pipeline is repaired or a full import ban is enacted.

This exemption, granted due to the landlocked countries’ inability to access alternative supplies amid the disruption, requires quarterly reports on import volumes to Brussels.

However, Croatia remains hesitant, with Minister Šušnjar emphasizing that while the Adria pipeline has capacity, sourcing from Russia raises ethical concerns about funding Moscow’s war efforts.

Hungary has already ordered 500,000 tons of Russian crude for delivery via Croatian ports in early March, anticipating transport to its refineries within 5-10 days.

These development fits into broader narratives of EU energy dependencies, Russia’s war influence, and Hungary’s pro-Moscow leanings under Orbán, with potential for escalation as winter demands peak. The EU’s exemption acknowledgment provides Hungary a lifeline but underscores the bloc’s internal divisions over sanctions enforcement.

Questioning the EU temporary exemption

The EU’s temporary exemption allowing Hungary and Slovakia to import Russian oil by sea during pipeline disruptions does seem counterintuitive at first glance, as the Adria pipeline could indeed transport non-Russian crude just as easily from Croatian ports, but it serves a pragmatic purpose in bridging short-term energy vulnerabilities for these landlocked nations while they diversify away from Moscow’s supplies.

In essence, the policy recognizes that their refineries are heavily tuned to process Russian Urals crude, making an abrupt switch to alternatives like Brent or Middle Eastern blends logistically challenging and potentially more costly in the immediate term – think refinery modifications, higher prices, and supply chain hiccups.

That said, it risks perpetuating Europe’s indirect funding of Russia’s war machine through discounted oil deals, highlighting the bloc’s internal divisions: while Croatia’s reluctance to handle Russian-sourced shipments underscores ethical concerns over “war profiteering,” the exemption buys time for Budapest and Bratislava to align with broader EU diversification goals, though their track record under leaders like Orbán suggests limited enthusiasm for that shift.

Overall, it’s a classic EU compromise – practical but imperfect – that prioritizes stability over swift sanctions enforcement, potentially at the cost of moral consistency.

Caption: Hungarin Minister of Foreign Affairs and Trade Peter Szijjarto holds a press conference following a cabinet meeting in Budapest, Hungary, 18 February 2026. Szijjarto announced that Hungary has stopped delivering diesel fuel to Ukraine, and would only resume it once Ukraine has restarted crude oil deliveries to Hungary through the Druzhba pipeline. The delivery of Russian crude oil through the Druzhba pipeline to Hungary was stopped on 27 January. EPA/BOGLARKA BODNAR