Efforts to reduce Europe’s dependence on Russian energy following the invasion of Ukraine have left significant vulnerabilities within the continent’s energy system. Hungary has emerged as one of the final strongholds of Russian energy influence in Europe, maintaining deep ties with Moscow across the oil, gas, and nuclear sectors.

This analysis examines how sanctions exemptions, infrastructure lock-ins, and regulatory loopholes continue to allow Russian fossil fuels to flow into Central and Southeast Europe. It assesses Hungary’s continued reliance on Russian crude oil through the Druzhba pipeline, its long-term gas dependence via TurkStream, and the geopolitical implications of the Russian-financed Paks II nuclear project, while also highlighting how emerging regional infrastructure projects and market distortions risk creating new channels for sanctions circumvention.

The authors of the article:

• Martin Vladimirov, Director, Еnergy and Climate Program, Center for the Study of Democracy
• Tsvetomir Nikolov, Analyst, Energy and Climate Program at Center for the Study of Democracy
• Isaac Levi, Europe-Russia Policy & Energy Analysis Team Lead, Centre for Research on Energy and Clean Air
• Borbala Toth, Senior Research Associate, REKK