Orbán pointed out that the capacity had already been raised by 900 million cubic meters at the beginning of April from 2.6 billion cubic meters to 3.5 bcm. These capacity expansions occurred after Ukraine halted the transport of Russian gas through its territory at the start of the year when a previous deal allowing the transit had expired.
Orbán said it was “regrettable” that Ukraine no longer allowed natural gas transit across its territory. “It’ll be very difficult for Ukraine to establish closer ties with Europe like this,” Orbán said, “they should show much more understanding towards our countries and should also take our economic interests into consideration.”
While all countries dependent on this flow of Russian gas through Ukraine were dealt a blow, Slovakia had been doubly impacted. Not only did it use the gas domestically, but it also earned transit fees by facilitating gas supply to Austria. Hungary, meanwhile, was able to compensate for its losses by increasing its supply through the TurkStream pipeline, through which it has been able to supplement Slovakia.
On the theme of natural gas, Minister of Foreign Affairs and Trade Péter Szijjártó underscored the vital role that Bulgaria has played in ensuring the security of Hungary’s supply through the TurkStream pipeline, following a phone conversation with Bulgaria’s Minister of Energy Zhecho Stankov on April 22.
“We greatly appreciate the current Bulgarian government’s responsible approach in this matter, and it is reassuring that the minister confirmed today that Bulgaria will remain a reliable transit partner for Hungary in the future,” Szijjártó said.
More than 20 mcm of natural gas currently arrives in Hungary via Bulgaria daily through TurkStream, Szijjártó said, amounting to more than 2.3 bcm year-to-date. The foreign minister also emphasized the need to significantly expand natural gas pipeline capacity in southeast Europe to help Central Europe diversify its energy sources.
To facilitate the optimal usage of energy resources, the Independent Energetic Data Center (FEAK) announced the launch of the development of a Public Institution Energy Management Platform (KEP) on April 24. Developed in partnership with the Digital Government Development and Project Management Company, the project is backed by nearly HUF 8 billion in funding from the European Union Regional Development Fund and the Hungarian national budget. It is scheduled to be completed on March 31, 2026.
On the consumer side, the Ministry of Energy Affairs announced on April 23 that nearly 6,000 homeowners have so far applied for HUF 33.2 bln in subsidies to finance energy efficiency upgrades for their homes. Relaunched in January, the ministry noted that HUF 73 bln has been allocated to the program, through which more than 1,300 applicants have received payouts totaling HUF 4.6 billion. Available for homes built before 2007, the subsidies can be used for insulation, window and door replacement, and heating system upgrades.
Meanwhile, energy companies have commented on the normalization of the energy market over the past year in their most recent annual reports. Having closed its third most profitable year with consolidated revenue of EUR 17.9 bln in 2024, the Swiss-based MET Group said that the decline from EUR 24.5 bln in 2023 reflected a normalization in energy prices. MET has Hungarian roots, having been founded as a MOL subsidiary in 2007.
For its part, MOL had a more nuanced take on this normalization. Chairman-CEO Zsolt Hernádi told shareholders that dividends had increased to HUF 275 per share from HUF 250 last year because the company did not foresee any major acquisitions requiring cash in 2025. He added that MOL must prepare for what he described as “the new normal,” an era of ongoing uncertainty.
Elsewhere, Hungary’s oil and gas giant received some welcome news when a U.S. federal court recently ruled in its favor in its longstanding dispute with the Croatian government over the management of Croatian energy company INA.
The court dismissed Croatia’s challenge to a 2022 decision by the International Center for Settlement of Investment Disputes (ICSID), which had ordered Croatia to pay MOL USD 184 million for breaching contractual obligations. With accrued interest, the amount has increased to USD 200 mln. This ruling allows MOL to pursue enforcement of the payment through U.S. courts.
The conflict between MOL and Croatia dates back to when the Hungarian firm became INA’s majority shareholder with a 47.16% stake and gained management rights over the firm. The state of Croatia alleged that MOL gained control through corrupt means and failed to fulfill specific investment commitments. However, international arbitration bodies have consistently rejected Croatia’s claims and ruled in MOL’s favor.
Electric vehicle sales, meanwhile, continue to gain traction in Hungary. Among the 32,900 new passenger car registrations between January and March, 56% of total sales were hybrid electric and plug-in hybrid models, according to the latest data from the European Automobile Manufacturers’ Association. Fully electric vehicles represented 7% of the market, with battery EV sales rising 5% to 2,400 during the period.
Ministry of Energy Affairs State Secretary Gábor Czepek said on April 16 that businesses had applied for the full HUF 30 billion available under a subsidy scheme supporting electric vehicle purchases, with 6,688 applications submitted for purchasing 7,749 EVs. Yet, Czepek urged businesses to continue applying for the scheme, which runs until Dec. 1, as some existing applications may be rejected.
This article was first published in the Budapest Business Journal print issue of May 5, 2025.
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