Commodities, Emerging Markets, Energy

Hungary: We Have Strengthened Our Cooperation With Russia

Prime Minister Viktor Orbán and President Vladimir Putin agreed that Hungary can use the amount of gas which has not been consumed so far, within long-term gas contracts due to expire this year. Also, Hungary will pay for the amount it actually consumes. “We have firmly secured energy supply for Hungarian families and have also guaranteed the operation of Hungarian industry,” the Prime Minister said.

Photo: Károly Árvai

Photo: Károly Árvai

By The Hungarian Government

Following negotiations, economic cooperation agreements were signed which, according to the Prime Minister, perfectly serve the interests of Hungary. Five bilateral agreements were signed by the Hungarian and Russian delegations on regional, healthcare and higher education cooperation, training in energy matters and the opening of a consulate in Kazan.

The Hungarian prime minister stressed that Hungary needs Russia, the Russian market and energy. As for long-term gas contracts, only technical details need to be finalised and energy supply for Hungarian families and companied will be guaranteed. He added that the sanctions against Russia were detrimental to international relations, thus we need to once again strengthen economic cooperation.

Mr. Orbán urged settlement of the relationship between the EU and Russia. He stressed that it is not reasonable to exclude Russia from Europe and it is in the interest of both Hungary and Europe to solve the issue in a methodical and reasonable way. It is only together with Russia that the security of the region can be established, and much negotiation is needed for that; he added that the ceasefire agreement reached in Minsk is a good bases for this.

Hungary-2

Photo: Gergely Botár

The Prime Minister emphasised that the potential foundation for improved international relations is peace and Eurasian economic cooperation; European unity can be created through Eurasian cooperation. Mr. Orbán stated that, concerning Ukraine, Hungary stands for peace and is hopeful in relation to the ceasefire: the EU, too, was founded to create peace. The Prime Minister added that Hungary has two-hundred thousand reasons to achieve peace in Ukraine; “peace is not merely the lack of conflict, but the non-violent path to conflict resolution,” he said.

Talking about the negotiations, President Putin said that extending Russian-Hungarian cooperation does have potential, as Russia is an important partner of Hungary. One of the main reasons for the meeting, however, was that over the last year trade relations between the two countries have decreased. “We have established a number of intergovernmental committees that will be tasked with overcoming these difficulties and finding solutions by exploiting regional cooperation,” Mr. Putin said.

Hungary-3

Photo: Gergely Botár

He also talked about the extension of the Paks nuclear plant, and reminded those present that Russia provides significant support to Hungary: eighty per cent of the EUR 12 million project is financed from Russian loans on favourable terms. The project allows Hungary to reduce the price of energy and to create new jobs, the Russian president stressed.

Concerning further energy policy cooperation, Mr. Putin said that he is hopeful that parts of what has been established together with Hungarian partners within the South Stream project can be utilised in the Turkish Stream project. He emphasised that they support oil extraction by MOL in Russia and that the country is still ready to enter into a partnership on transportation of Russian energy resources.

Hungary-4

Photo: Gergely Botár

 “We hope that our future cooperation will also be supported by the agreements signed today,” President Putin said. He also praised the effective operation of the Hungarian National Trading Houses, the development of cultural relations and the success of joint healthcare programmes.

President Putin thanked Hungary for remembering fallen Soviet soldiers with respect and honour, and he invited Prime Minister Orbán to the commemoration ceremony to be held on the 70th anniversary of the end of World War II.

(Prime Minister’s Office)


Courtesy of The Hungarian Government

About ETFalpha

Chief ETF Strategist & Co-Founder at EMerging Equity

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