Hungary rejects oil storage project with Ukraine

Hungary rejects joint oil storage project with Ukraine

Hungarian Prime Minister Peter Magyar rejected a joint strategic oil storage project with Ukraine. The move brought energy and diplomatic tensions between the two countries back into focus.

Scraper SystemSeptember 24, 2026, 10:52 AM

Hungary rejects joint oil storage project with Ukraine

The energy dispute between Budapest and Kyiv took on a new dimension after Hungarian Prime Minister Peter Magyar rejected a joint strategic oil storage project with Ukraine. The plan called for the construction of tanks to store strategic oil reserves in Hungary’s border region.

The project emerged from a memorandum signed by Ukraine’s national energy company Naftogaz and Hungary-based MOL Nyrt. Magyar opposed the project and warned the head of MOL Nyrt. for taking action without government approval.

Budapest takes part in Carpathian Eight meeting at a low level

The development came after Ukrainian President Volodymyr Zelenskyy announced the “Carpathian Eight” format, which would include Romania, Serbia, Poland, Slovakia, Czechia, Austria and Hungary. The format was intended to address security, energy, logistics and cross-border economic cooperation.

Hungary declined to attend the meeting two days in advance and sent only its deputy ambassador. During the same period, Moldova’s Parliament Speaker Igor Grosu was hosted in Hungary, a visit that drew criticism in Ukraine.

Kyiv responds to Hungary’s stance

Ukraine’s Foreign Ministry said it was concerned by Budapest’s approach. The ministry criticized the stance, arguing that it represented the continuation of a “pro-Russian” policy aimed at isolating Ukraine.

Energy has long been one of the main areas of tension in relations between Hungary and Ukraine. Hungary turned to alternative supply routes through Türkiye, Bulgaria and Serbia because of past disruptions to the transit of Russian gas through Ukraine.

Debate over oil and natural gas infrastructure

During the conflict in Ukraine, some natural gas and oil infrastructure affecting Hungary’s energy supplies also came under discussion. Claims that the Ukrainian administration pressured Budapest over energy transit routes were not independently verified.

The reasons for the final decision on the joint oil storage project between Hungary and Ukraine were not disclosed. Despite statements that the project was intended for research purposes, Budapest did not change its position.

Hungary rejects joint oil storage project with Ukraine

Hungarian Prime Minister Peter Magyar rejected a joint strategic oil storage project with Ukraine. The move brought energy and diplomatic tensions between the two countries back into focus.