The EU's proposal to impose a complete Russian oil embargo is unacceptable, Hungarian PM Viktor Orban told public radio on Friday, adding that it would be tantamount to dropping an atomic bomb on Hungary's economy.

Hungary’s prime minister emphasized that the leaders of EU member states had previously reached an agreement to only proceed with steps that take into account the countries’ different energy structures and their sovereign right to determine their energy mix. However,

the president of the European Commission „willingly or unwillingly, attacked Europe’s unity that was created with great difficulty.

PM Orban pointed out that

an oil embargo would be akin to dropping a nuclear bomb on Hungary’s economy,

adding that its approval would „bring an end to the reduced utility costs” causing petrol prices to rise to 700 forints (appr. 1.7 euros) and the price of diesel shooting up to 800 forints (2.1 euros).

The battle I am fighting now is for the protection of Hungary’s utility cost reduction scheme, Mr Orban said.

Had we agreed to it [the embargo], it would have put an end to the utility price caps. If Hungary’s issue remains unresolved, and the oil and gas embargo was introduced, reduced utility fees would come to an end, he noted. „So, return to sender,” Hungary’s prime minister said, implying that he has sent back the Commission’s proposal by return of post.

PM Orban recalled that the sanctions imposed so far are doing more damage to European economies than to Russia. We were willing to agree to the first five sanctions packages, but we signalled that restrictions on energy carriers would be a red line, he underlined.

Replacing Russian oil imports would take years and cost hundreds of billions of forints, while changes to Hungary’s energy transmission system would cost thousands of billions of forints, PM Orban said.

It is worth considering whether such a switchover makes any sense, Hungary’s prime minister said, adding that they look forward to seeing some new proposals.

Peace remains Hungary’s position

The proposal to sanction Patriarch Kirill is another red line. We do not support putting church leaders on sanctions list, the Hungarian premier said.

Every country has its own experience, Mr Orban said, pointing out that this is why we need to be clear about who is at war here. This is a war between Russia and Ukraine, he stressed. Based on the Hungary’s historic experience, the country must assume a position and determine its interests.

Our position is peace

he said.

Neither the French president, nor the German chancellor succeeded in their Moscow peace missions, he remarked. We will not confuse the interests of the US, Germany or Poland with those of Hungary, so we want to stay out of this war.

PM Orban, however, explained that Hungary is helping Ukrainians in any way it can. The country has admitted nearly 700,000 Ukrainian refugees and offered 37 million euros in support, he said.

Those who ship weapons bring trouble onto themselves. Trascarpathia has become a target because somebody transported weapons, he stressed, adding that those who ship weapons make local people targets.

Government structure to be significantly overhauled

Hungary held its parliamentary elections on 3 April, which was won by the Fidesz-Christian Democrat (KDNP) party alliance by a two-thirds majority. Viktor Orban said he was already busy in terms of changing the current government structure.

In the past, every time we changed the structure of the government, we had the future challenges in mind. Migration will stay with us and migratory pressures will rise. The pandemic is also not over yet, it will be a part of our thinking, and the war is also here.

We have to form such a government that can give adequate responses to these challenges – Hungary’s premier said.

A new government is being formed and new work is beginning. The structure of the government will change significantly, and I want to bring in a lot of new people, PM Orban added. Hungary may have a new government the end of May at the latest, he said.