---
title: "MOL: Hungary technically ready to abandon Russian oil by end of 2027, warns of political crisis"
description: "MOL Hungary head György Bacsa stated the company will be technically ready to gradually phase out Russian oil by the end of 2027 and called on the EU to increase diversification funding, warning of the risk of price hikes and political crisis in Hungary and Slovakia."
date: 2026-11-13T15:14:33.235Z
lang: en
url: https://xab.info/en/posts/mol-hungary-russian-oil-exit-2027-eu-funding
tags: [mol, hungary, russian-oil, eu-funding, energy-security, adria-pipeline, druzhba-pipeline, slovakia]
author: "Andrey Kosynko"
publisher: "XAB.info"
---

# MOL: Hungary technically ready to abandon Russian oil by end of 2027, warns of political crisis

![A worker in a hard hat and earmuffs talks on a radio in front of oil refinery pipelines](https://xab.info/media/2026/11/13/mol-vengriya-otkaz-rossiyskaya-neft-2027-eu-funding/mol-vengriya-otkaz-rossiyskaya-neft-2027-eu-funding-1.webp)

## Key Points

- MOL announced technical readiness to gradually phase out Russian oil by late 2027 and requested additional EU funding
- MOL Hungary head Bacsa warned that the transition could lead to higher energy prices, social unrest, and political instability in Hungary and Slovakia
- IMF data suggests a full break from Russian energy could increase Hungary's energy costs by 15% by 2030
- The Adria pipeline is a key diversification element; MOL and JANAF remain in a dispute over capacity
- The European Commission does not rule out fossil fuel infrastructure discussions but prioritizes abandoning Russian energy

Hungarian oil and gas company MOL, the largest energy infrastructure operator in Central Europe, announced it will be technically prepared to phase out Russian oil imports by the end of 2027. This was stated in an interview with Euronews by MOL Hungary head György Bacsa, who also serves as the group's strategic development director. According to him, the company is calling on the European Commission to increase funding to support the transition from Russian energy, as achieving diversification goals is impossible without targeted European resources. Bacsa emphasized that MOL complies with all EU rules and sanctions and remains committed to diversifying its energy supply sources.

### Warning of social and political risks

Speaking to journalists, Bacsa did not hide the gravity of the consequences that reducing Hungary's dependence on Russian oil could entail. In his estimation, the switch to alternative supply sources will inevitably lead to higher energy prices, which, in turn, could trigger social unrest and increase political instability not only in Hungary but also in Slovakia—the only EU countries that still import significant volumes of Russian oil via the Soviet-era Druzhba pipeline.  "This could really set these economies back, which could lead to a political crisis, and the consequences of a political crisis would be unpredictable and could potentially affect all of European politics," Bacsa stated. In Hungary, gasoline and diesel prices already surged in 2026, sparking active criticism from opposition parties. At the same time, Urals crude was trading at about $60 per barrel at the time of the interview—approximately 34% lower than Brent benchmarks.

### A turnaround in energy policy after government change

The path currently pursued by MOL differs fundamentally from the strategy during Viktor Orbán's rule, when Hungary deliberately maintained a high dependence on Russian oil and refused to participate in several EU energy initiatives. With a new government in Budapest, the company is for the first time seeking EU funding for energy supply diversification. Prime Minister Péter Magyar, for his part, publicly stated that Hungary's dependence on Russian oil and gas cannot be eliminated overnight and demanded that Brussels include compensation for the phase-out of Russian energy carriers in the European Union's seven-year budget.  Thus, both at the government level and at the level of the key industry company, a unified position has been formed: the transition is necessary, but it must be gradual and supported by European funding.

### Financial pressure and IMF data

The scale of financial costs associated with a complete break in Russian energy supplies was documented in a study by the International Monetary Fund published in 2025. According to IMF calculations, a full abandonment of Russian energy could increase Hungary's energy costs by approximately 15% by 2030, putting additional pressure on its energy security and budget. For context: according to European Commission data, Russia's share in EU oil imports fell from 27% in 2021 to just 2% currently. Hungary and Slovakia remain the only member states that continue to receive significant volumes of Russian oil via the Druzhba route. This is precisely why Bacsa emphasizes that in a crisis, the question of willingness to pay 10–20% more for non-Russian energy ceases to be secondary.

### The Adria pipeline and infrastructure gap

A key element of MOL's diversification strategy is the Adria pipeline, which connects Croatia to Hungary and could become a full-fledged alternative to the Druzhba route. However, MOL and the Croatian state pipeline operator JANAF have been embroiled in a dispute for years over throughput capacity, transit tariffs, and conditions for transporting Russian oil to Hungary and Slovakia. The company has already requested the European Commission to mediate this dispute. "The question of whether JANAF will now pass the set threshold test is very important to us," Bacsa noted. "But even then, we should not abandon the goal of being at the center of several diversified pipeline systems, rather than being at the end of a single pipeline." Besides Adria, MOL is interested in connecting Hungary to the TAL pipeline, running from Trieste to Germany, and would welcome the resumption of the Druzhba section from Brody to Odesa in Ukraine—a matter that earlier in 2026 became a cause of serious political friction between Kyiv and Budapest.

### Brussels' position and fossil fuel limitations

According to Bacsa, current EU restrictions on fossil fuel projects effectively prevent MOL from obtaining European funding for expanding the pipeline network necessary for supply diversification. He pointed out that Central and Eastern Europe lags significantly behind Western Europe in terms of pipeline infrastructure and called for the creation of a targeted European program with resources for the infrastructural interconnection of all gas, electricity, and oil product pipeline systems. European Commission representative Ikonen, commenting on these statements, did not rule out discussing fossil fuel infrastructure projects but emphasized that reducing dependence on Russian energy remains a priority for Europe. "I don't have a ready-made answer on whether we will have funding or what options are possible. But our priority is that our member states have diversified energy strategies so they do not receive oil, gas, and LNG from Russia," she said. Thus, the question of whether MOL will receive the requested funding and in what volumes remains open and will be determined during further negotiations between Budapest and Brussels.

## Fact-Check & Sources

- [MOL просит средства ЕС на отказ от российской нефти, предупреждает о риске протестов](https://ru.euronews.com/2026/11/13/hungarys-mol-seeks-eu-funding-as-ceo-warns-russian-oil-phase-out-could-trigger-social-unre) - Primary source. Interview with György Bacsa for Euronews, Nov 13, 2026. All key MOL statements, IMF data, EC statistics, pipeline information (Adria/TAL), and quotes from EC rep Ikonen are confirmed.
- [Мадьяр заявил, что Венгрия не может быстро отказаться от российской нефти](https://www.rbc.ru/economics/12/10/2026/6acbd80982c580fd06c94a60) - PM Péter Magyar's statement on Oct 12, 2026, about the impossibility of a rapid exit from Russian oil aligns with MOL's position on a gradual transition by 2027.
- [«Разумный подход». Венгрия требует у ЕС компенсаций за отказ от российских нефти и газа](https://www.gazeta.ru/politics/2026/09/10/23534569.shtml) - Magyar's statement on Sep 10, 2026, demanding compensation from the EU's seven-year budget aligns with MOL's request for increased European funding.

## FAQ

### When does MOL plan to stop using Russian oil?

MOL states it will be technically ready for a gradual phase-out of Russian oil imports by the end of 2027. The company's head emphasizes that the process must be gradual rather than abrupt.

### Why do Hungary and Slovakia still import Russian oil?

According to the European Commission, Hungary and Slovakia remain the only EU countries still importing significant volumes of Russian oil via the Soviet-era Druzhba pipeline. Russia's share of EU oil imports has dropped from 27% in 2021 to 2%.

### What alternative routes is MOL considering?

A key element of the strategy is the Adria pipeline from Croatia to Hungary. MOL is also interested in connecting to the TAL pipeline (Trieste-Germany) and would welcome the reopening of the Brody-Odesa section of Druzhba.

### Will MOL receive EU funding?

At the time of publication, the matter remains open. EC representative Ikonen did not rule out discussing fossil fuel infrastructure but stated that the priority is the diversification of member states' energy strategies.