According to the changes, the government would only continue to provide state support, such as free housing and a monthly stipend, to Ukrainian refugees whose last official address in Ukraine was in an area “directly affected by military operations.” So far, 13 regions in Ukraine have been included on the list of affected areas, which the regulation said would be updated on the 10th day of each month.

Of the 31,000 Ukrainians taking refuge in Hungary, the UN’s refugee agency estimated that 2,000-3,000 would be affected by the legislation, over half of whom are children.

“Many face significant barriers in securing alternative housing due to lack of financial means but also reluctance of owners to rent,” the UNHCR told BBC News. “For many, the change will result in job losses and impact school enrollment, jeopardizing the positive integration achievements obtained so far.”

Refugees from the Roma ethnic minority in Transcarpathia, the westernmost region in Ukraine that shares a border with Hungary, have been disproportionately affected. Their situation is further complicated by the fact that many are dual-citizens of Hungary and Ukraine, which precludes them from applying for asylum anywhere else in the European Union.

Although many lack the means or are unwilling to return to Ukraine while hostilities persist, government commissioner Norbert Pál told conservative daily Magyar Nemzet that “those who wanted to get back on their feet in Hungary have been able to do so.” After two-and-a-half years of war, he justified the changes as “reasonable and proportionate.”

In the days following the amendment coming into force, Radio Free Europe reported witnessing the eviction of at least 120 refugees in Kocs (70 km west of Budapest). According to the report, many of the evicted had set up camp near a local bus station, with police monitoring the area to keep children from wandering into traffic.

EU Behind Lukoil Decision?

Meanwhile, Minister of Foreign Affairs and Trade Péter Szijjártó asserted that the European Commission had been the true instigator behind Ukraine’s decision to block Lukoil’s deliveries of Russian crude from passing through its territory to Hungary and Slovakia.

“I think the fact that the EC has declared that it is unwilling to help with regard to Hungary and Slovakia’s secure energy supply supports the assumption that Brussels instructed Kyiv to create a problem for the energy supply of Hungary and Slovakia,” Szijjártó said on Aug. 24.

Days earlier, Szijjártó said that, despite the EC’s lack of support, talks on ensuring Hungary’s long-term supply of crude had been “on the home straight.” This appeared to be confirmed by Gergely Gulyás, the head of the Prime Minister’s Office, at a press conference on Aug. 22. According to Gulyás, Hungarian oil and gas company MOL had a “good chance” of reaching an agreement which would involve it taking over the transit of the crude from the border between Russia and Ukraine. The measure was expected to add about “a dollar and a half” per barrel to the price of the crude, as the Ukrainian transit fee, and the risk involved with the delivery, would be borne by MOL. Gulyás said the government didn’t want that extra cost to be passed on to consumers, adding that it would potentially compensate for the increased costs by reducing special taxes, such as those the company pays on the spread between Brent and Urals prices. These agreements, Gulyás said, could be signed as early as “at the beginning of autumn.”

This article was first published in the Budapest Business Journal print issue of September 6, 2024.