Hungary’s top diplomat secured a deal to expand gas flows from Russia and renewed a financing deal for its nuclear power plant, underscoring Budapest’s schism with the rest of the European Union over Ukraine’s invasion of from Russia
Foreign Minister Peter Szijjarto sealed the deals as Prime Minister Viktor Orban moves to increase his country’s reliance on Russian oil, gas and nuclear supplies, while other EU members strive to break free
Hungary will now have the option to receive more natural gas from Russia in addition to an existing long-term agreement ahead of the winter storage season. Szijjarto also agreed to further secure the supply of crude oil through the Druzba pipeline through Ukraine.
“Russia has always been a reliable energy supplier, in the future we are also ready to guarantee reliable supplies to Hungary,” Putin’s Deputy Energy Minister Alexander Novak said in a statement after the two met on Tuesday . He thanked Szijjarto and Orban for “constructive cooperation”.
Hungary has taken steps to diversify its energy sources, accessing liquefied natural gas from maritime terminals in Croatia and Poland. Budapest has also held talks with Azerbaijan for electricity and gas exports.
But relations with Moscow remain paramount in the energy field. After visiting Belarus in February, another rare trip to a Moscow ally under Western sanctions, Szijjarto twinned his meeting with Novak by also speaking with Alexey Likhachev, the chief executive of state nuclear corporation Rosatom.
Novak and Likhachev are under sanctions from Ukraine and some of its allies, though not the EU. Orban has criticized EU sanctions against Russia, saying they are not working, despite economic data showing they have hurt President Vladimir Putin’s government’s ability to build weapons and escalate its war in Ukraine.
Novak is crucial to Hungary’s continued efforts to import gas and oil from Russia after Orban secured an exemption from an EU ban on most crude imports by threatening to block it.
“As long as energy supply is a physical issue and not a matter of political or ideological like or dislike, Russia and cooperation with Russia will remain crucial to Hungary’s energy security,” Szijjarto said in a statement.
Rosatom is overseeing the expansion of Hungary’s Paks nuclear power plant, a deal that has drawn criticism for giving Putin influence over an EU country’s energy supply.
The agreement Szijjarto reached on Tuesday includes funding for the project that will “guarantee its implementation”, he said, adding that the deal would need the approval of the European Commission.
“Preparatory works are underway to construct auxiliary buildings” at Paks 2, Rosatom said in a Telegram post after the meeting. Rosatom continues with the process of obtaining licenses for certain types of works, he added.
