IMF warns: Hungary could suffer Europe’s worst economic hit if Russian gas supply ends
An analysis by the International Monetary Fund (IMF) shows a cutoff of Russian gas could result in an output loss of 4pc of GDP for Hungary, Minister for European Union Affairs János Bóka said in a post on Facebook on Wednesday.
Bóka said Hungary had repeatedly said that the planned embargo on Russian energy at the end of 2027 would present a serious risk to the country, considering its geographical location. He added that the IMF’s fresh analysis was “crystal clear” about what would happen to Hungary if its Russian energy supply ceased. According to the analysis, Hungary could face “the steepest losses” in the event of a European Union-wide Russian gas cutoff, he said.
Adria pipeline capacity tests fail due to technical problems
Capacity tests of the Adria crude pipeline have failed because of technical problems, oil and gas company MOL said on Wednesday. MOL and Janaf, the operator of the Adria, which brings overseas crude from Croatia to Hungary, had tested the pipeline to determine whether it could operate stably for long periods at maximum capacity.
Joint tests conducted on several occasions a week earlier have not indicated, so far, that the pipeline would be capable of supplying enough crude to Hungary and Slovakia in the long term, MOL said. In the course of the tests, the pipeline could not operate at sufficient capacity for longer than 1-2 hours, it added.
Deviating from the earlier agreed-upon plan, MOL said Janaf had informed it that maximum pressure could only be applied for an hour. MOL added that a power outage had interrupted one test, according to Janaf, and pressure was still reduced when deliveries resumed.
MOL noted that it had spent USD 170m before the outbreak of the war in Ukraine on upgrading energy delivery infrastructure from the south, reducing its dependency on infrastructure in the east. Since 2022, it has ploughed several hundred million dollars into its refinery technology to allow its crude supply to be diversified, MOL said.
Secure supply for the region would require the Adria to operate with a capacity of 40,000 tonnes of crude a day or 14 million tonnes a year, it added.