00:00Does Hungary really have no alternative to Russian oil?
00:07Hungary says it has no alternative to Russian oil, despite most EU member states having reduced
00:13their dependence on Russian energy since Moscow's full-scale invasion of Ukraine.
00:18The country still gets about 90% of its crude from Russia, mostly via the Drusba pipeline,
00:24making Hungary one of the EU countries most dependent on Russian oil.
00:28Budapest insists there is no real substitute and its primary oil group, MOL, warns that switching
00:34away would be complex and risky. But according to analysts, Hungary does have other options.
00:40Experts point to the Adria pipeline, which could bring in non-Russian crude oil via Croatia.
00:45Its operator, Yanaf, told the cube that it's capable of supplying Hungary with oil and that
00:50its refineries have processed non-Russian oil in the past. Another sticking point for Budapest
00:56is the cost of energy, which is experiencing renewed pressure over the conflict in the Middle East.
01:01Prime Minister Viktor Orban says Russian oil is essential for energy security and affordable fuel.
01:07Russian oil is generally cheaper than international benchmarks by around 20% in 2024. But analysts say
01:14these savings haven't necessarily been reflected in fuel prices. In fact, the Center for the Study of
01:20Democracy's analysis shows that petrol and diesel prices in Hungary have at times been higher than
01:26in neighboring countries such as Czech Republic using non-Russian oil. According to Ben McWilliams,
01:32an energy analyst at the Bruxelles think tank, Hungary's reliance is driven by commercial interest
01:37rather than technical constraints. Hungarian officials reject this, saying price caps and reserve releases
01:43have protected consumers and warning that abandoning Russian energy would be costly.
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