The fact that Hungary is cooperating with Russia on energy issues is not out of political preferences or for fun, but the region's infrastructure, says the Foreign Minister.Continue reading
The government must not only fight against rising oil and gas prices, but also guarantee security of supply, the Parliamentary Secretary of State of the Prime Minister’s Office stressed on Kossuth Radio’s Sunday News program.
Csaba Dömötör added that in the case of gas, long-term contracts are a guarantee for Hungary, but other countries are not only facing price increases, but are also an uncertainty concerning whether there will be enough gas for the heating season. “This is why we say that the voices calling for change need to be amplified.
Our amplifier is the national consultation, which is why the fact that over a million people have already filled it in is so significant.
I would like to take this opportunity to thank everyone who has done so,” he stressed.
According to the politician, the issue of petrol prices and oil supply is topical because the decision on the oil embargo taken in the summer will enter into force in the coming days. Hungary has fought for an exemption from the decision and managed to continue receiving Russian oil via pipeline, but unfortunately the country will not be exempt from the price increase, he reminded.
Meanwhile, Brussels is already working on a ninth package of sanctions, which would reportedly include nuclear energy, he pointed out. This would cause serious damage to Hungary, partly because the Paks Nuclear Plant’s units use Russian technology, and partly because it would put obstacles in the way of the Paks expansion.
Paks electricity is a guarantee of cheaper electricity for Hungary, and therefore we do not support nuclear sanctions,”
he underlined.
The Hungarian government’s task is to achieve a change of direction, because otherwise Europe could suffer a competitive disadvantage from which it will be impossible to recover. The secretary of state also recalled that although EU decision-makers had earlier said that sanctions would end the war, this was not the case. Meanwhile, the effects on the European economy are drastic: the European Commission already expects a recession and economic slowdown in the fourth quarter.
Olivér Hortay, head of energy and climate policy at Századvég Konjunktúrakutató Zrt., also spoke about the situation on public television M1 news channel. He said that
the question in Europe is no longer how much crude oil or fuel costs, but whether there will be any.
The expert added that the increasingly severe market tensions will spill over to Hungary, and could even threaten the fuel price freeze.
Russia is trying to redirect its exports, and in recent months this has been more successful than expected, with more crude oil finding new markets, Olivér Hortay said, adding that if the Russians are able to redirect their exports to other regions, the sanctions will be pointless, and Europeans will pay the cost unnecessarily. There is also a risk that the US will impose export restrictions to protect its market. This could further limit the EU’s room for maneuver, he said.
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