Lifting the ban on Russian oil? Imposing windfall profit taxes? Under the energy crisis, many European countries are "losing patience."

With the U.S.-Iran war nearing its sixth week, the sharp rise in energy prices under the Strait of Hormuz blockade is increasingly taking a toll on Europe’s economy. The latest data released earlier this week by the European Union’s statistics agency shows that the euro area’s March inflation rate has climbed to 2.5%, far above February’s 1.9%. With another round of inflation “rearing its head,” there is no doubt it will again increase pressure on European households’ cost of living.

Europe’s heavy dependence on imported fuels makes it extremely vulnerable to Middle East conflict-driven swings in global energy prices. Trading data shows that since Feb 28, when the U.S. and Israel launched an attack on Iran, European natural gas prices have risen by more than 70%. EU energy commissioner Dan Jorgensen has warned that the chaos caused by the blockade means fuel prices “are unlikely to return to normal in the foreseeable future.”

Against this backdrop, many European countries are clearly getting a bit “anxious”:

It is understood that Slovakia and Hungary have said the EU should lift its sanctions on Russian oil and natural gas in order to strengthen energy security;

Meanwhile, the finance ministers of five countries—including Spain, Germany, and Italy—have urged the EU to impose an EU-wide windfall tax on energy companies. They worry that the surge in oil and natural gas prices caused by the war with Iran will intensify inflation and put pressure on households.

Slovakia and Hungary call for an immediate end to energy sanctions against Russia

Slovak Prime Minister Fico said on Saturday that the EU should end its sanctions on Russian oil and natural gas imports, take measures to restore flows through the “Friendship” oil pipeline, and end the war in Ukraine to respond to an energy crisis stemming from the Iran war.

Fico made the remarks after speaking by phone with Hungarian Prime Minister Orban. Fico said the EU should resume dialogue with Russia and ensure that member states can obtain the missing natural gas and oil supplies from all sources, including Russia.

Orban also pointed out that he held talks with Slovakia’s Prime Minister Fico on Saturday. Hungary and Slovakia urged Brussels to immediately lift sanctions and restrictions on Russian energy so that Ukraine’s President Zelensky could immediately open the “Friendship” oil pipeline. In addition, plans that propose getting rid of Russian energy and switching to higher-cost, harder-to-absorb Brussels energy policies should be rejected immediately.

At present, Hungary and Slovakia are among the most “Russia-friendly” countries within the EU.

Since the U.S. and Israel launched attacks on Iran on Feb 28, international oil prices have surged significantly. Fighting has disrupted cargo transport in the Gulf region and caused what the International Energy Agency (IEA) called the largest oil supply disruption in history. Central European countries, including Hungary and Slovakia, are trying to take measures to mitigate the impact of high oil prices on the refueling costs faced by the public and businesses.

Since the outbreak of the Russia-Ukraine conflict in 2022, the EU has sharply reduced imports of Russian oil and gas. Data show that as of the fourth quarter of 2025, the share of oil imported by the EU from Russia is only 1%.

Hungary and Slovakia were the only two EU countries that were still importing Russian oil as of Jan 27. However, since Jan 27, shipments through the “Friendship” oil pipeline that runs via Ukraine have been completely suspended. Ukraine says the interruption was caused by attacks launched by Russia on pipeline infrastructure within Ukraine, while Hungary and Slovakia accuse Ukraine of cutting power supplies and deliberately delaying the restart.

In his statement on Saturday, Fico also said that responding to the energy crisis only at the national level is not enough.

Finance ministers of five countries call for windfall taxes on energy companies

In addition to renewed disputes within the EU over sanctions against Russia amid the energy crisis, the “war profits” energy firms are making have also become a thorn in the side of many European officials. A letter to the European Commission, seen by people in the industry on Saturday, shows that due to fuel price increases caused by the Iran war, the finance ministers of five EU countries are jointly calling for a windfall tax on energy companies’ profits.

In a joint letter on Friday, the finance ministers of Germany, Italy, Spain, Portugal, and Austria urged that the aforementioned taxes be implemented across the EU. They said such measures could help provide relief to consumers facing high energy prices and send a signal of “we are united and capable of taking action.”

“ This will make it possible to fund temporary relief, especially for consumers, and curb continuously rising inflation, without adding an extra burden to public budgets,” the ministers wrote in the letter. They also noted, “This will also send a clear message that those who profit from the consequences of war must do their part to ease the burden on the public.”

In a letter to EU climate commissioner Wopke Hoekstra, the five finance ministers also mentioned similar emergency taxes imposed in 2022 to cope with high energy prices. They wrote, “Given the current market distortions and fiscal constraints, the European Commission should rapidly develop a similar EU-wide contribution tool, built on a solid legal foundation.”

An EU Commission spokesperson confirmed that the letter has been received and is being assessed. The spokesperson said, “More broadly, the Commission is working closely with member states to explore possible targeted policy measures to address the energy crisis Europe is currently facing.”

The letter does not provide details on the windfall tax levels the finance ministers propose or which companies should be taxed.

The German Fuel and Energy Association, representing refineries and gas stations, responded that the impression that companies are earning improper profits is inaccurate, and that there is no justification for imposing a windfall tax.

Earlier, EU energy officials also said on Tuesday that they were considering restoring energy-crisis measures used in 2022, including proposals to limit grid fees and electricity taxes. After Russia cut natural gas supplies, the EU rolled out a series of emergency policies in 2022—which included an EU-wide cap on natural gas prices, windfall taxes on energy companies, and targets to restrain natural gas demand.

EU energy commissioner Dan Jorgensen said Brussels is focusing in the short term on the supply of refined petroleum products such as aviation fuel and diesel in Europe.

(Source: Caixin Global)