Hungary becomes regional distributor of Russian gas, generating windfall revenues
Change language:
Hungary’s emergence as the regional distributor of Russian gas amidst the ongoing Russia-Ukraine war and escalating tensions between Russia and NATO has raised concerns, particularly for Slovakia. The arrangement has led to significantly higher costs for Slovakian consumers, while certain Hungarian companies are reaping substantial profits from the transactions.
Your only option is Hungary to buy Russian gas
Following the cessation of Russian gas transit via Ukraine to Central Europe on 1 January, the region now depends solely on the TurkStream pipeline. This pipeline, which enters Hungary near Kiskundorozsma from Serbia, has become the primary route for gas deliveries. Analysts suggest that Hungary’s long-standing strategy of fostering close energy and political ties with Russia has paid off in this new arrangement, as reported by Hvg.hu.
The Kiskundorozsma interconnector, with a capacity of 8.5 billion cubic metres, is fully utilised by Hungarian state-owned MVM and energy company MET. These entities manage gas trade, storage, and redistribution, selling Russian gas to Ukraine, Slovakia, and Austria. Serbia also rents Hungarian gas storage facilities, further enhancing Hungary’s geopolitical influence in the region.
Attila Holoda, a Hungarian expert on energy policy, explained that Hungarian Földgázszállító Ltd benefits from gas transit revenues, particularly in Slovakia. With 300,000 cubic metres of gas flowing northward each hour, the profits are significant. Slovakian consumers are now paying more for gas transiting through Hungary than they did for gas delivered via Ukraine.
Slovaks face higher costs
Previously, Slovaks paid transit fees only at the Ukrainian-Slovakian border. Now, they must pay additional fees from the Serbian-Hungarian border, further increasing costs. Holoda criticised the Slovakian government for failing to negotiate an agreement with Ukraine to avoid such an unfavourable situation. Instead, Slovak Prime Minister Robert Fico has prioritised discussions with Russian Foreign Minister Sergei Lavrov.
Good. Hungary’s and Hungarians’ interests FIRST. Banning Russian energy, without having feasible alternatives, harms us, not the Russians.
Well done P.M. Orban and F.M. Szijjarto. Your policies keep Hungarian people warm all winter. Before countries like Slovakia or Austria complain about the prices, do not forget the gas is transported through Turkey and Serbia. Both countries are responsible for safekeeping the pipelines. That cost money. Hungary should not bear the burden of extra cost; countries that receive gas from Hungary should just say thank you to both Russia and Hungary.