EU needs to rethink Russian sanctions to cut energy costs — Hungary's Orban

The European Union needs to reconsider sanctions against Russia as they are keeping energy prices elevated, hindering the bloc's economic competitiveness, Hungarian Prime Minister Viktor Orban said on Friday.

European Union leaders signed a declaration on competitiveness at their informal summit last week.

"Energy prices need to be lowered by all means. This means that sanctions need to be reconsidered because under the current sanctions policy, energy prices will not go lower," Orban s aid in an interview on Hungarian public radio.

Orban said US companies pay a quarter of the amount their European counterparts spend on gas and electricity, a disadvantage that could not be overcome by other means.

Since Russia started its military operation against Ukraine in early 2022, Orban has emerged as a vocal critic of EU sanctions against Moscow and the bloc's financial and military support for its neighbour.

While countries in western Europe have made serious efforts to wean themselves off Russian energy, landlocked Hungary gets 80-85 percent of its gas from Russia, with 80 percent of its crude oil supplies also coming from its former communist ally.

Soaring energy prices across Europe

Since 2022, the EU has imposed a series of sanctions on Russia aimed at crippling its economy and pressuring the Kremlin to end the war.

These sanctions include measures targeting Russia’s energy sector, financial institutions, and key industries. However, while Western European countries have made significant efforts to reduce their dependence on Russian energy supplies, the EU’s sanctions have had complex and varied impacts.

The sanctions have led to soaring energy prices across Europe, which have burdened households and industries alike. As a result, the EU has been grappling with economic challenges, with some member states questioning the long-term effectiveness of these measures.

Orban’s criticism of EU sanctions reflects a broader debate within the union about the long-term economic consequences of the measures.

While some European countries have aggressively sought to diversify their energy sources and reduce dependence on Russia, Hungary’s energy security remains closely tied to its historical relationship with Moscow.