Hungary of Viktor Orban opened a crack on the united European energy front by signing a series of agreements with Russia by Vladimir Putin, as opposed to Brussels' choices to isolate Moscow precisely on the crucial energy business
For the third time in the last twelve months, the Hungarian Foreign Minister, Peter Szjjiarto, went to Moscow where he met the deputy premier Alexander novak, responsible for Energy, and CEO of the Russian energy giant Rosatom Alexey Likhachev, to discuss the energy cooperation between Hungary and Russia. The minister communicated this via social media, defining the agreement with Moscow "not an ideological or political issue" but rather a means of guaranteeing the "security of Hungary's energy supply" which requires "uninterrupted transport of gas, oil and fuel nuclear. To meet these three conditions – they explained – Hungarian-Russian energy cooperation must be uninterrupted“.
Novak and Likhachev are both subject to sanctions by Ukraine and some of its allies, but not by the EU. Some EU member states have been putting pressure for months for Brussels to place the Russian energy giant under sanctions, as requested on several occasions by Kiev.
The gas agreement: Budapest can buy it from Moscow on favorable terms
In Moscow Szjjiarto succeeded in his intent. As reported by Ansa, the Russian state energy company Gazprom has agreed to allow Hungary, if necessary, to import amount of natural gas higher than the agreed volumes in a long-term contract signed last year. Budapest will then be able to purchase the gas, which will reach the country via the Turkstream pipeline, at a limited price at 150 euros per cubic metre, paying it on a deferred basis if market prices rise above this level.
The nuclear deal: the restructuring of the Packs plant
At the Moscow summit, the Hungarian government also signed an agreement with Moscow on the modification of the contract for the expansion and restructuring of the Paks nuclear power plant in Hungary, says a statement by the Hungarian foreign minister. The parties have agreed to review the construction and financing contracts. Once the changes to the contract are in place, the minister explained, they will be submitted to the European Commission for approval. “We hope that the Commission does not want to jeopardize the long-term security of Hungary's energy supplies,” said Szijjártó, underlining the importance of Paks' expansion to maintain affordable electricity prices and ensure sustainable energy supply in Hungary.
