Hungary continues to rely on Russian gas

Hungary wants to import more natural gas from Russia: The EU country has signed new contracts for additional supplies in Moscow.

A spokesman for Hungarian Prime Minister Orban warned the EU against banning the supplementary agreement.

Despite the Russian war of aggression against Ukraine, Hungary is maintaining trade relations with Moscow. The country agreed new contracts for energy cooperation with Russia. Hungary’s Foreign Minister Peter Szijjarto said in Moscow that he had reached an agreement with Russia that would allow energy giant Gazprom to supply additional gas beyond the amounts agreed in a long-term agreement.

The Russian group confirmed this and added that a payment delay would also be possible in this context.

15-year contract with Russia since 2021

The price for the gas that Hungary will purchase via the Turkstream pipeline is capped at 150 euros per cubic meter, Szijjarto said. The foreign minister emphasized that access to Russian energy supplies is crucial for Hungary’s security – regardless of political considerations related to the war.

EU and NATO member Hungary gets 80 to 85 percent of its natural gas from Russia and also received 80 percent of its crude oil imports from there in 2022, according to Szijjarto. A 15-year contract has been in place since 2021, which secures the country 4.5 billion cubic meters of gas per year from Russia.

A warning to the EU

Szijjarto’s trip to Moscow was unusual for a government official from an EU country. The governments of most EU members have distanced themselves from Russian President Vladimir Putin over the Ukraine invasion and are trying to make their countries independent of fossil fuels from Russia.

A spokesman for Hungarian Prime Minister Viktor Orban warned the EU on Twitter not to ban the additional agreement that has now been concluded. The national conservative head of government has been emphasizing his special relationship with Russia for years.

Putin speaks of increasing income

Despite Western sanctions, Russia’s President Putin got his country in the mood for increasing state revenues from the oil and gas business. At a televised government meeting, he praised the resilience of the domestic economy.

Russia’s oil and gas revenues fell by around 1.3 trillion rubles (around 14.5 billion euros) in the first quarter of 2023. However, it is expected “that the situation will change by the end of the second quarter against the background of rising oil prices. Additional oil and gas revenues will flow into the budget,” Putin added.

IMF expects growth for Russia

In the first quarter of the year, Russia recorded a budget deficit of around 26.6 billion euros. This is mainly due to falling revenues from key energy exports, which are subject to Western sanctions over the Ukraine war.

Nevertheless, according to estimates by the International Monetary Fund (IMF), the Russian economy will grow noticeably – despite the punitive measures taken by the West. Compared to 2022, the prospects for Russia are significantly better. Last year, the Russian economy shrank by 2.1 percent.

Show More

Related Articles

Back to top button
Breaking News
%d bloggers like this: