Skip to content
You can now search across every topic, entity and event.What's new
European Energy Markets
3AUG

Hungary halts gas exports to Ukraine

2 min read
10:53UTC

Budapest began cutting reverse gas supplies amid the Druzhba dispute, adding energy coercion to its continued blockade of the €90 billion EU loan.

EconomicDeveloping
Key takeaway

Hungary combined loan blockade, gas cutoff, and EU obstruction into three-track pressure on Ukraine.

Hungary began halting reverse gas exports to Ukraine on 25 March amid the ongoing Druzhba pipeline dispute 1. EU experts remain in Kyiv to inspect the damaged pipeline, but Ukraine has not granted access to the affected section.

The gas cutoff follows Fico's declaration of an oil supply emergency in Slovakia , where the Druzhba shutdown threatens refinery operations. Both Hungary and Slovakia depend on Russian crude delivered through the pipeline, which was damaged by Russian strikes in January 2026. Budapest blames Kyiv for the shutdown; Ukraine and EU assessments attribute the damage to Russian military action.

Hungary's punitive measures now span three domains. It continues blocking the €90 billion EU loan , despite nominally having dropped its objection. The SAFE freeze announced the same day (25 March) was the EU's response. And the gas export halt adds direct energy pressure on Ukraine, which relies on reverse flows from Central European neighbours to supplement its own supply.

The 25 April deadline for the EU's phased Russian gas ban looms. For Hungarian and Slovak consumers, that deadline translates to higher heating costs unless alternative supply routes open. Hungary's energy dependence on Russia gives it disruptive power within the EU, but the SAFE freeze demonstrates the bloc is willing to retaliate with financial consequences.

Deep Analysis

In plain English

Ukraine gets some of its gas through a process called 'reverse flow': neighbouring countries buy gas from Western Europe and pipe it back east to Ukraine. Hungary has started blocking this supply. Separately, there is a Soviet-era oil pipeline called Druzhba that used to carry Russian oil through Ukraine to Hungary and Slovakia. It was damaged (Ukraine says by Russian drones; Hungary disputes this) and Hungary wants Ukraine to fix it. Hungary is using both energy levers — the gas flow and the pipeline dispute — as pressure on Ukraine while also blocking a €90 billion EU loan.

First Reported In

Update #8 · Pentagon diverts funds; 948 drones fired

Euronews· 27 Mar 2026
Read original
Different Perspectives
Cross-border power traders
Cross-border power traders
The France-Germany day-ahead spread flipped from a EUR 17.20 German premium on 1 August to a EUR 4.15 French premium on 3 August, the same day French curtailment peaked. They cannot yet attribute the flip to curtailment alone, since a like-for-like overnight comparison shows French nuclear output rising while wind fell and demand returned on the weekday step.
EDF
EDF
River-cooling limits took 7.6 GW, 12 per cent of its fleet, offline on 3 August, the highest curtailment since the heatwave began, with an easing forecast to 4.3 GW on 4 August and 3 GW after. It manages the cut as a recurring seasonal constraint, expecting it to lift with river temperature, not repair.
Gasunie
Gasunie
TTF, the Dutch hub it operates, drifted to roughly EUR 55 to 58 per MWh across the window, staying inside its recent range through both the German spark reversal and the French curtailment. It reads a flat hub price as evidence that neither event this window carried enough weight to move the fuel leg on its own.
German gas-fired generators
German gas-fired generators
Record German solar of 18,761 MW on 2 August pushed the clean spark spread to minus 18.48 EUR/MWh, a loss-making day, before it returned to plus 16.20 on 3 August. They now price dispatch against post-solar residual load rather than wind alone, since the sign flipped inside 48 hours on unchanged fuel and carbon costs.
European Commission (DG Energy)
European Commission (DG Energy)
Its implementing-measures register logged transposition notices from only Portugal and Slovakia against Wednesday's Article 94 deadline for Directive (EU) 2024/1788, with 25 states silent. It expects the register to fill only gradually, since filing routinely lags legislating and any infringement track against non-notifying states runs on a slower clock than the deadline itself.
Spain's LNG terminal operators
Spain's LNG terminal operators
Spain's 9,145 GWh terminal inventory is the largest single stock in the EU LNG network, an option value that can reroute cargoes wherever the winter strip pays best rather than a cavern gas obligation tied to a fixed date. That flexibility matters more as Germany's cavern shortfall pushes more of the winter security question onto import infrastructure.