Jul 21, 2025

Hungary and Serbia have announced a new oil pipeline to circumvent EU energy restrictions.

Hungary and Serbia are collaborating on a new oil pipeline to ensure affordable energy supplies as the EU seeks to reduce reliance on Russian energy, announced Hungarian Foreign Minister Peter Szijjarto on Monday.

The pipeline is expected to have an annual capacity of 4-5 million tons and is set to be operational by 2027, with Hungary constructing 180 kilometers of the infrastructure.

Szijjarto stated, “Brussels wants to cut us off from Russian oil and gas, forcing Hungarian families to pay two to four times more. We won’t allow that. We are building new sources, not shutting them down."

He mentioned that the pipeline will support Hungary’s utility cost reduction efforts and protect families from energy price increases linked to EU policies.

Hungary, which has consistently opposed EU energy sanctions, sees the project as vital for national energy security and cooperation with Serbia.

This initiative coincides with both countries strengthening their energy partnership, as Serbia relies heavily on Russian oil and gas, while Hungary seeks alternative routes amid EU diversification efforts. Budapest has warned that cutting off Russian energy would negatively impact its economy and increase household expenses, as over 80% of Hungary’s oil imports currently come via the Druzhba pipeline.

In 2023, Hungary and Serbia also initiated joint investments in gas infrastructure, including a new interconnector aimed at boosting regional energy security.