Russia continues to play a major role in Hungary’s energy supply. In 2024, 74% of gas consumed and 86% of oil imported the country from Russia.
Hungary’s losses due to the complete EU abandoning from Russia’s energy sources can exceed 4% of GDP. This is stated in the IMF message.
It is noted that Russia continues to play a major role in Hungary’s energy supply. In 2024, 74% of gas consumed and 86% of oil imported the country from Russia. For comparison: in 2018, these indicators were 64% and 66%, respectively.
Dellerances of hydrocarbons depend on a limited number of routes, especially the Turkstream gas pipeline through Serbia and the Adria oil pipeline through Croatia. It enhances Hungary’s weakness with disruptions and price shocks.
As you know, Hungary is one of Europe’s most energy economies. The country uses significantly more energy per GDP unit compared to the average EU level.
The main consumption is falling into the industry, especially for chemistry, metallurgy and automotic industry. In these sectors, energy costs determine the amount of production and investment.
The European Union’s entire refusal to provide Russia’s energy sources by 2027 would be a serious test for the Hungarian economy. According to IMF calculations, in the case of a complete cessation of gas supplies from Russia, the collapse of the Hungarian GDP may exceed 4%.
It emphasizes the need for accelerated -diversification of supplies, increased energy efficiency and deeper integration in the regional power market.
The IMF reports a comprehensive package of steps to strengthen Hungary’s energy security. At the EU level, rising prices for carbon leaks, a deepening of the energy union and the expansion of the power trade were suggested.
For Hungary itself, the main steps are called: strengthening energy efficiency standards for transportation, buildings and households, accelerated resolution to renewal power plants, as well as denial of subsidies for fossil fuel.
It is expected that implementing a comprehensive package of steps will reduce Hungarian energy risks by 30% and reduce energy costs to 10% of GDP for five years. In addition, these reforms will support the fulfillment of EU’s climatic targets, including reducing 55% exits by 2030 and the achievement of carbon neutrality by 2050.
Keep in mind that the European Union is organizing the legislative proposals to gradually terminate Russian oil and gas imports until January 1, 2028.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.