Hungary Extends Energy Deals With Russia

By Stefan J. Bos, Chief International Correspondent Worthy News

BUDAPEST (Worthy News) – Hungary’s foreign minister has sealed deals with Russia on expanding nuclear energy, natural gas, and oil supplies despite Moscow’s invasion of Ukraine.

Minister Péter Szijjártó, one of few European officials visiting Moscow these days, triggered anger in the United States and the European Union.

Szijjártó confirmed that he had agreed with Russia to modify the construction and financing contract of Hungary’s only nuclear power plant in Paks, some 100 kilometers (62 miles) south of Budapest.

Hungary wants two new reactors to enter service by 2030, as the plant already supplies around 40 percent of Hungary’s electricity needs.

Szijjártó hoped the European Union’s executive would “quickly” approve the amendment “so that we can move forward with this investment.”

“We hope that the European Commission does not want to jeopardize the long-term security of the Hungarian energy supply,” Szijjarto said in a video statement.

“In many cases, they are clearly trying to block the successful nuclear cooperation between Hungary and Russia throughout Europe with political means and unlawful decisions.”

EXPANDING PLANT

In 2017, the European Commission allowed the expansion of the Paks plant — built with Soviet-era technology in the 1980s — with a 10-billion-euro ($12.4 billion) Russian loan.

Hungary is paying for the remaining 2.5 billion euros to more than double the plant’s current capacity. The work is carried out by Moscow’s state-owned nuclear agency Rosatom.

Szijjártó also said Tuesday he agreed with Russia that its energy giant Gazprom would maintain an option for additional natural gas shipments to Hungary this year.

Under a 15-year deal signed in 2021, Hungary has received 4.5 billion cubic meters (bcm) of gas annually from Russia, mainly via Turkstream.

Additionally, after meeting Russian Deputy Prime Minister Alexander Novak in Moscow, Szijjártó stressed that Hungary’s oil and gas firm MOL would pay transit fees to Ukraine’s pipeline operator Ukrtransnafta for crude shipments.

However, Ukrtransnafta notified Russia’s pipeline operator Transneft of its plans to raise the fee it charges for the transit of natural gas, sources said.

The announcement came amid mounting anger about Hungary’s perceived pro-Russian stance, charges the government denies.

ENERGY SECURITY

The government says it seeks energy security as landlocked Hungary gets 80-85 percent of its natural gas from Russia, officials said. Szijjártó also noted that 80 percent of crude imports also came from Russia.

“[Energy giant] Gazprom maintains the option that if we need it, for preparations for winter or filling up storages….we can buy additional gas on top of the amount set in the long-term deal,” Szijjártó explained.

However, the U.S. has condemned Hungarian deals and perceived them as undermining Western actions against Russia’s invasion of Ukraine.

In response, the U.S. is considering slapping influential Hungarian individuals with sanctions, according to Western diplomats.

The U.S. ambassador to Hungary, David Pressman, was to hold a press conference amid concerns about renewed tensions on April 12.

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