Hungary Moves to Restrict Gas Supplies to Ukraine as Druzhba Pipeline Row Continues

Hungary has banned its gas transmission system operator from holding auctions for shipments to Ukraine in the third quarter, as it moves to wind down supplies to its neighbor in a dispute over oil flows.

“In view of the armed conflict and humanitarian disaster in the territory of Ukraine, and in order to prevent and manage their consequences in Hungary, the transmission system operator may not announce either interruptible or non-interruptible capacity auctions for the third quarter of 2026 for the transport of natural gas to Ukraine,” a Hungarian government decree issued on March 25 reads.

The decree also states that a further 800 million cubic meters (mcm) of natural gas must be stored in Hungary’s storage facilities on top of previously mandated quantities.

Hungarian Prime Minister Viktor Orban revealed the move on March 25, saying that it will continue until oil flows resume to Hungary through the Druzhba pipeline.

The Druzhba pipeline is a roughly 2,485-mile artery carrying Russian oil into the landlocked heart of Europe. “Druzhba” means “friendship” in many Slavic languages.

Hungary and Slovakia have been cut off from shipments of Russian oil since Jan. 27, when Ukraine said that pipeline equipment on the Druzhba line was damaged by a Russian strike in western Ukraine.

Budapest has accused Ukraine of deliberately holding up oil supplies—accusations Kyiv denies, saying that it has been working to repair the damage as quickly as possible.

Hungary and Slovakia maintain closer ties with Moscow than the rest of the bloc and have defended their continued purchase of Russian energy, saying that alternatives are too expensive.

“We will gradually halt gas shipments from Hungary to Ukraine and will store the gas that remains here domestically,” Orban said in a video posted on Facebook.

“Until Ukraine supplies oil, it will not receive gas from Hungary. Since Ukraine is also attacking the southern gas pipeline supplying Hungary, we must conserve our reserves.”

Orban will present the move to his Cabinet at a meeting on March 26.

He also warned earlier that Hungary could cut electricity exports to Ukraine if flows via the Druzhba do not resume.

Data from Ukraine’s gas transmission operator showed that March 26 gas supplies from Hungary would remain at levels seen in recent days, with about 8.2 mcm of gas nominated for supply to the country, down from 8.3 mcm the day before.

Ukraine plans to receive a total of 24.7 mcm of gas from Hungary, Poland, Slovakia, and Romania on March 26, according to the data.

Spokesperson for the Ukrainian Ministry of Foreign Affairs Heorhii Tykhyi said on March 25 that if Hungary halts gas shipments to Ukraine, it will deprive Hungary of more than $1 billion in revenues it received last year.

“The fact is that Ukraine, unlike Hungary, by the way, is a diversified country and at one time took the necessary measures to ensure that the supply of energy resources was diversified and we did not depend on what the prime minister of a neighboring country wants to do as part of his election campaign, for political reasons,” he said.

Orban, who has been Hungary’s prime minister since 2010, faces a general election next month.

The friction between Budapest and Kyiv over the Druzhba pipeline has affected the entire European Union, with Hungary refusing to back the bloc’s plans to provide a 90 billion euro ($104.2 billion) loan to Ukraine to support its war effort.

The EU requires unanimity among its member states to approve the move, but Orban has said he will not approve it until flows via the pipeline resume, telling Kyiv, “No oil [equals] no money.”