Gazprom signs deal with Hungary on possible increase in gas sales

Russian gas giant Gazprom has signed a memorandum with Hungary on a possible increase in gas sales. Reuters reported the news, citing a company statement. Hungary’s foreign minister, Péter Szijjártó, spoke today at a Russian energy forum in St Petersburg despite the war in Ukraine and Western sanctions. Hungary currently holds the rotating presidency of the Council of the European Union.

Szijjártó said he was not afraid of pressure from the EU over his visits to Russia, according to Russian news agencies. “Foreign policy is part of sovereignty, and we will not allow anyone to restrict that sovereignty,” the Hungarian minister said. Speaking at the St Petersburg International Gas Forum, he advocated maintaining cooperation with Moscow in oil, gas and nuclear energy. He stressed that while decision-makers in Brussels regard energy as an “ideological” issue, Hungary views energy supplies as a “physical reality” that also depends on supply infrastructure.

According to Szijjártó, Hungary will not be harmed by the loss of the option to transit Russian gas through Ukraine because the country receives Russian gas via the TurkStream pipeline across the Black Sea. “This alternative route can help not only Hungary but also other Central European countries if they face a serious situation in the event that transit through Ukraine stops,” the Hungarian minister said. He also criticized Ukraine, which is at war with Russia, for not wanting to extend the agreement on the transit of Russian gas through its territory, which expires at the end of the year.

Unlike most European Union countries, Hungary is trying to maintain close political and trade ties with Russia. Ukraine has said it will not renew the agreement with Russia, while Moscow has said the decision is up to Ukraine and Europe.

In 2023, Russia supplied approximately 15 billion cubic metres of gas to Europe via Ukraine. That is only around eight percent of the volumes delivered via various routes in 2018 and 2019, when they were at their peak.

Szijjártó said Hungary was satisfied with its cooperation with Russian energy giant Gazprom and had no attractive alternatives. “This year, we are taking a total of 6.7 billion cubic metres of gas from Gazprom in Hungary… This will mean that TurkStream is fully used at its full capacity,” the Hungarian minister said.

As for oil, Hungary will import approximately five million tonnes from Russia this year via the Druzhba oil pipeline, the Hungarian foreign minister said. He added that the EU had not imposed sanctions on Russian gas and nuclear fuel supplies thanks to Hungary. The government of right-wing populist Viktor Orbán has continued to maintain good relations with Moscow, even two and a half years after the EU introduced sanctions against Russia. In July this year, Kremlin leader Vladimir Putin received the Hungarian prime minister. Orbán faced sharp criticism in the European Parliament this week, where he presented the priorities of Hungary’s presidency after a delay.