EU’s Proposal Banning Russian Oil Is ‘Nuclear Bomb’ for Hungary Economy, PM Says

Hungarian Prime Minister Viktor Orban speaks as he and Hungarian President Janos Ader give a statement to the media after their talks at the Presidential Palace in Budapest, Hungary, on April 29, 2022. Bernadett Szabo/Reuters

The European Commission’s current proposal banning Russian oil imports is under threat after Hungary warned it cannot accept the ban, stating that it would amount to a “nuclear bomb” for its economy.

Hungary’s Prime Minister Viktor Orban made the comments regarding the “unacceptable” proposal during an interview with public broadcaster Kossuth Radio on Friday.

Orban said the EU’s proposal would be akin to “dropping a nuclear bomb on the Hungarian economy,” adding that its approval would “be the end of the utility price caps” according to local reports.

He warned that gasoline prices in the country could reach 700 Hungarian forints ($1.95) per liter while diesel could cost up to 800 forints ($2.23).

“The battle I am fighting now is a battle to protect Hungary’s utility price caps,” Orban said, noting that replacing Russian imports of oil could take years and cost the country millions. Changes to Hungary’s energy transmission system could also cost the nation billions, the prime minister said.

The investments needed to make those changes would take up to five years, he said, while appearing to take aim at the EU who he stated has allocated money to funding such developments but has “yet to give us that money” meaning that it “cannot start the works until that arrives.”

Orban, who is embarking on his fourth consecutive term in office, also took aim at European Commission president Ursula von der Leyen in his comments on Thursday.

Noting that EU member states had previously agreed that the bloc should only take steps that take into consideration the sovereignty of each State over its energy resources, Orban, said that von der Leyen “either willingly or unwillingly, attacked this hard-fought European unity.”

Landlocked Hungary relies heavily on Russian oil, sourcing nearly 65 percent of its oil supplies, and 85 percent of its gas from the country.

While nations with seaports can receive energy supplies via ships, Hungary, among other landlocked countries are solely dependent on pipelines to transport the oil.

“The pipeline leading to Hungary starts in Russia … that is a given,” Orban said.

The Epoch Times has contacted a European Commission spokesperson for comment.

Orban did, however, state that Hungary was ready to negotiate any new proposal that would meet the country’s interests.

His comments come amid the European Commission’s (EC) proposal of “a complete import ban on all Russian oil seaborne and pipeline, crude and refined,” by the end of the year in response to Russia’s invasion of Ukraine which began in February.

During the European Parliament’s plenary session in France on Wednesday, von der Leyen confirmed the EC proposal which she said will see a gradual phasing out of European dependence on Russian oil.

“We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimizes the impact on global markets,” von der Leyen said.

“Thus, we maximize pressure on Russia, while at the same time minimizing collateral damage to us and our partners around the globe. Because to help Ukraine, our own economy has to remain strong.”

Both Hungary and Slovakia had been given an extra year to make alternative arrangements under a revision earlier this week.

However, the proposal still needs unanimous agreement from the 27 members of the bloc before it can go into effect.

Orban said on Thursday that the process of weaning off Russian oil and making alternative arrangements would need five years to complete, adding that “1-1.5 years is not enough for anything.”